Europe may struggle to contain a financial shock tied to crypto firms and banks because its crisis tools are more limited than those used in the U.S. during the 2023 banking turmoil, a senior official with European bank UniCredit said Thursday.

Elena Carletti, UniCredit’s deputy vice chair and head of the board’s risk committee, said European authorities may not be able to guarantee crypto-linked deposits in the same way U.S. regulators did after the collapses of Silicon Valley Bank and Signature Bank, Reuters reported.

Speaking at a banking conference hosted by Madrid’s IESE Business School, Carletti said the U.S. decision to protect all deposits, including funds held by stablecoin issuers, helped stabilize crypto markets during…