Battle lines receive the European Central Bank and the European Commission As to whether the landmark rules for the regulation of blocking of the block are strong enough to withstand the sweeping changes brought about by Trump’s policy on cryptocurrencies.

The ECB believes that the significant support provided by the US president in the field of cryptocurrencies is in danger of provoking a financial “transmission” which could to shake the European economy in the air, According to a document with Politico.

On the other side, The European Commission rejects ECB’s strong concernpointing out that it has misunderstood the rules of the EU itself.

The argument sheds light on how nervously the financial policy makers are generally about the Trump government’s moves to “extend the dollar range” through a more complex financial technology. European officials are concerned that many major reforms in financial markets announced by the US president will undermine efforts to become strategically independently as the EU is trying to renew its financial sector. They are worried that it will cause a flight of assets to the US and will establish new risks to the system.

This particular conflict concerns the Regulation for Cryptocurrency Markets (MICA), A landmark law passed in 2023 and announced as the first regulation in the world to introduce strong consumer safeguards and rules for cryptocurrency companies.

At the heart of the recent dispute that has erupted is a popular type of cryptocurrencies, known as ‘Stablecoins’which have caused great concern as they mimic the stability of large coins such as dollars and euro, as opposed to the most unstable cryptocurrencies such as bitcoin. The majority of these fixed coins are expressed in dollars and in some countries they are already used as an easily accessible alternative to the dollar when local coins are unreliable.

Governments are afraid that they could replace traditional money, undermining national sovereignty and leaving citizens vulnerable.

Theoretically, the MICA Regulation reduces the risk of Stablecoins, however, scheduled US reforms, including an executive decree of the White House and the drafting of two laws, extend the range of the US Stablecoin industry.

Two top officials suggested that MICA rules are not strong enough to withstand the impact of a US Stablecoin industry, worrying that a flood of dollars in Europe could lead European savings to the US.

Drama began on April 14 when top officials of EU governments’ financial services met to discuss the impact of assets US encryption In the financial stability of the EU. Both the central bank and the EU executive have released their own documents on the matter, underlining the gap between the views between the institutions about the dangers of Washington.

The ECB argued that the regulation needs a serious review. The gap between European institutions has turned into a conflict, as EU officials and most governments did not agree with the ECB, according to two diplomats and one EU official who were not named.

“The committee was clear that he had different views on this issue” and “they didn’t support many [χώρες] the idea that now we should start making quick changes to [κανόνες] On the basis of that alone, “said one of the diplomats.

In its own document, which was also seen by Politico, the Commission strongly defended the effectiveness of the rules, even taking into account the planned US reforms, implying that the central bank was melodramatic. “The risks resulting from such global stable coins seem to be overestimated and are manageable on the basis of the existing legal framework,” the committee told the document.

The EU executive argued that it was still “too early” to judge the impact of the revival of cryptocurrencies in the US on EU markets. In any case, he said, the MICA rules already require the encryption asset providers to comply with more stricter criteria to market the EU – their stablecoin. The committee, however, acknowledged that these rules require enforcement.

However, the EU executive also noted that only one worldwide Stablecoin has been approved under the new rules so far. The bill allows the Central Bank itself to prevent the operation of such if “they are a threat to the smooth functioning of payment systems, monetary policy transmission or monetary sovereignty,” he said.