A senior European Union official has expressed concerns that former U.S. President Donald Trump’s support for cryptocurrencies could threaten Europe’s monetary sovereignty. The warning comes as Trump’s increasingly pro-crypto rhetoric gains traction among digital asset advocates in the United States.
The EU official cautioned that if the U.S. under a potential Trump administration fully embraces cryptocurrencies, it could weaken the influence of central banks and disrupt Europe’s ability to regulate its own financial system. The concern primarily stems from the potential rise of decentralized digital assets that operate outside traditional monetary frameworks, reducing the effectiveness of EU financial policies.
Trump has previously criticized regulatory crackdowns on cryptocurrencies and has signaled a more favorable stance toward the industry, contrasting with the Biden administration’s stricter regulatory approach. This shift has raised alarms among European policymakers, who fear that an unregulated crypto surge in the U.S. could spill over into global markets, challenging the euro’s stability and the EU’s financial oversight.
European regulators have been working on comprehensive crypto regulations, such as the Markets in Crypto-Assets (MiCA) framework, aimed at ensuring oversight and stability in digital asset markets. However, the EU official suggested that a policy divergence between the U.S. and Europe could create regulatory gaps, making it harder for European authorities to maintain control over cross-border digital transactions.
As global financial institutions continue to assess the evolving regulatory landscape, Europe remains cautious about the potential risks associated with a more crypto-friendly U.S. policy, especially if led by a Trump administration.
