François Villeroy de Galhau, Governor of the Banque de France and a European Central Bank (ECB) Governing Council member, has warned that the United States’ growing embrace of cryptocurrency could sow the seeds of a future financial crisis.
In an interview with French newspaper La Tribune Dimanche, Villeroy stated that American regulators are being too lax, allowing crypto-assets and non-bank finance to flourish without sufficient oversight.
“The United States risks sinning through negligence,” he said. “Financial crises often originate in the U.S. and spread to the rest of the world. By encouraging crypto-assets and non-bank finance, the American administration is sowing the seeds of future upheavals.”
Trump’s Pro-Crypto Policies in the Spotlight
Former President Donald Trump, who returned to the White House in 2024, has actively promoted cryptocurrency adoption. His administration recently signed an executive order establishing a Strategic Bitcoin Reserve and a separate stockpile of other digital assets.
Additionally, the Securities and Exchange Commission (SEC) has dismissed multiple lawsuits against crypto firms following the resignation of former SEC Chair Gary Gensler.
Europe’s Crypto Oversight Stands in Contrast
Villeroy emphasized that Europe has taken a more cautious and regulated approach toward digital assets. The EU’s Markets in Crypto-Assets (MiCA) framework, set to take full effect in 2024, is designed to protect investors and prevent financial instability.
He also highlighted the need for Europe to strengthen the euro’s international standing, especially in response to Trump’s tariff policies that could disrupt global trade.
Growing Divide Over Crypto Regulation
The global divide over cryptocurrency regulation continues to widen. While the U.S. accelerates its crypto adoption, European regulators remain skeptical, warning that unregulated digital assets could trigger economic turmoil similar to past financial crises.
As the crypto industry expands, the debate over regulation versus innovation is set to shape the future of global finance.