A conflict has erupted within the European Union (EU) regarding cryptocurrency regulations as institutions like the ECB and the Commission engage in heated debate, especially concerning potential impact from U.S. regulatory changes under President Trump’s leadership. The latest policy document highlights that the ECB is proposing revisions to the Markets in Crypto-Assets (MiCA) framework, implemented months ago. This initiative stems from concerns regarding potentially destabilizing US-backed reforms that could flood the EU market with dollar-denominated stablecoins. The ECB fears this influx may lead to a capital flight from Europe towards U.S. assets, jeopardizing the EU’s financial autonomy and increasing banking liquidity risks. In contrast, the European Commission has refuted the ECB’s apprehensions, arguing that the EU’s regulations adequately address these concerns. This clash of ideologies within the EU underscores the complex challenges in regulating cryptocurrencies amidst shifting global policy landscapes.