EU regulator: US's push for crypto-friendly policies may exacerbate risks in the TradFi system.

According to ChainCatcher news and a report from CoinDesk, the joint report released by the three major EU regulatory agencies, including ESMA, on April 1st points out that the increasingly crypto-friendly policy stance of the United States is deepening the correlation between crypto assets and TradFi, which may increase systemic risks. The report mentioned that expectations of regulatory policies from the US are raising the volatility of encryption valuations. If there are no corresponding safeguards, it may trigger negative spillover effects in TradFi. ECB officials also called for the development of a digital euro to address the high volatility of encryption assets and the global expansion of dollar-dominated stablecoins.