While the US is in
its approach to crypto under President Trump, it seems to be raising alarms among EU officials about Europe’s financial stability.
Trump’s support for these kinds of assets, and particularly dollar-backed stablecoins – has revived fears that Europe might face a wave of US-dominated payment solutions that could challenge the euro.
Trump Chooses Crypto, Creating Global Ripples
In January 2025, Trump signed an executive order creating a strategic crypto framework to make the US a digital finance leader.
This marks a huge change from previous administrations’ cautious approach. The US government now actively promotes stablecoins, potentially disrupting international markets.
Many worry that the rise of dollar-pegged assets could reduce dependence on traditional banking, expanding US financial influence all around the globe. As the US eases regulations, crypto adoption will likely accelerate and build some new investment opportunities.
Analysts predict these changes could push the next altcoin boom, with analysts from Bitcoinist mentioning some of the best altcoins to buy now.
Europe Responds with Digital Euro Push
European financial leaders worry that US-backed stablecoins could undermine eurozone stability. Pierre Gramegna, Managing Director of the European Stability Mechanism, cautioned that the US crypto push might encourage tech giants to launch payment solutions using stablecoins instead of traditional currencies.
To counter this threat, the European Central Bank (ECB) is speeding up its digital euro development. The ECB has researched central bank digital currencies since 2020 to modernize Europe’s financial systems and maintain control over digital payments. In February, the bank expanded its CBDC pilot program to keep Europe competitive.
Diverging Approaches to Regulation
The US and Europe have taken different regulatory paths. While Trump chooses crypto and loosens restrictions, the EU has created a more cautious framework through the Markets in Crypto-Assets Regulation.
This establishes strict rules for stablecoins and exchanges to reduce financial risks. Critics argue these regulations could stifle innovation, pointing to the exodus of several crypto startups from Europe to more favorable US jurisdictions in recent months.
Dollar-Based Stablecoins Dominate Global Markets
Recent reports from the Bank for International Settlements show that dollar-based stablecoins already account for over 80% of the global stablecoin market, worth approximately $200 billion.
This dominance gives the US significant leverage in setting future standards for finance. Meanwhile, the EU’s digital euro project faces technical hurdles and public skepticism, with recent surveys showing only 34% of Europeans would trust a CBDC over traditional banking solutions – with privacy being the most important factor.
The Takeaway
The financial field is changing at lightning speed as the US positions itself as a crypto leader while Europe works to keep its monetary stability.
So, for all those investors that seek opportunities in the current market conditions, understanding the geopolitical implications of crypto regulation has become as important as analyzing technological developments.
