A senior European Central Bank (ECB) official said that President Donald Trump’s aggressive push for crypto adoption could fuel financial instability and urged EU policymakers to strengthen their regulatory stance to mitigate potential fallout.
François Villeroy de Galhau, Governor of the Bank of France and a member of the ECB’s Governing Council, said in an interview with French news outlet La Tribune Dimanche that the US “risks sinning through negligence” by prioritizing crypto-friendly policies without adequate oversight.
He argued that by “encouraging crypto assets and non-bank finance,” the US is “sowing the seeds of future upheavals,” adding that financial crises have historically “often originated in the United States and spread to the rest of the world.”
Villeroy de Galhau’s comments reflect a growing concern among European regulators over Trump’s pivot toward digital assets. Since returning to office, the Trump administration has taken a series of steps to integrate crypto into the financial system.
These include signing an executive order establishing a Strategic Bitcoin Reserve, forming a Presidential Working Group on digital assets, and pushing for legislative reforms that would roll back Biden-era restrictions on crypto banking.
ECB’s growing criticism
The ECB has repeatedly cautioned against the risks of a pro-crypto economic policy, warning that a lack of regulatory safeguards could trigger market turbulence. In a report last year, the central bank criticized the speculative nature of crypto, labeling them as “highly volatile and unsuitable as a reliable form of money.”
ECB President Christine Lagarde has also been vocal about the dangers of large-scale crypto adoption, previously describing Bitcoin as “a speculative asset with no intrinsic value” and cautioning that unregulated digital assets could undermine financial stability.
Earlier this year, the ECB announced a two-phase initiative to develop blockchain-based settlements, signaling its preference for a controlled, state-backed approach to digital assets. The plan includes establishing central bank digital currency (CBDC) called the digital euro, which the bank argues would provide a safer alternative to privately issued cryptocurrencies.
Despite Trump’s pro-crypto stance, financial markets have responded with volatility. Bitcoin recently tumbled below $80,000 — down over 25% from its January high of $109,000 — amid investor uncertainty over US economic policies. Equities have also taken a hit, with the S&P 500 falling more than 10% from its February peak after Trump threatened to impose 200% tariffs on European spirits.
Europe bracing for economic impact
Villeroy de Galhau urged European leaders to “strengthen their negotiating position” against the U.S., arguing that Trump’s economic policies are based on a “false vision” of the global economy as a zero-sum game. He warned that Europe should not be complacent in the face of Washington’s shifting financial landscape.
As the ECB moves forward with its digital payments infrastructure, European regulators appear to be positioning themselves as a counterbalance to the US’ deregulated approach. The divide highlights a fundamental clash in financial philosophy — one that could shape the future of global markets.
The post ECB official claims Trump’s pro-crypto stance could trigger financial turbulence appeared first on CryptoSlate.
