EU regulators warn crypto deregulation push in the US could fuel global financial risk
European financial regulators are warning that rising crypto-asset valuations, driven by expectations of US deregulation under President Donald Trump, could pose a growing threat to global financial stability.
The Joint Committee of the European Supervisory Authorities (ESAs) raised the alarm in its Spring 2025 risk update, highlighting the destabilizing impact of geopolitical fragmentation, US policy uncertainty, and digital asset market volatility.
The committee includes the European Banking Authority (EBA), the European Securities and Markets Authority (ESMA), and the European Insurance and Occupational Pensions Authority (EIOPA).
The report noted that “recent record high crypto valuations and volatility in the context of increasing…
