European regulators: Relaxing US regulation on cryptocurrencies may increase risks for traditional finance

According to Golden Finance, the European Securities and Markets Authority has stated that the US's cryptocurrency friendly stance may increase the risk level in financial markets by deepening the connection between traditional finance (TradFi) and the digital asset economy. In a joint report, ESMA、 The European Banking Authority and the European Insurance and Occupational Pensions Authority have pointed out that the volatility of cryptocurrency valuations is a key driving factor in the financial market, driven by the expected relaxation policy agenda in the United States and the increasing interconnectivity with traditional financial markets. A spokesperson for the EU financial market regulatory agency stated in an interview, "This cryptocurrency friendly stance may accelerate the adoption of cryptocurrencies, including by institutional investors. This in turn will increase interconnectivity, and without relevant safeguards, there may be negative spillover effects between cryptocurrencies and traditional markets