Finance
ECB: US Embrace of Crypto Could Trigger Financial Crisis | PYMNTS.com
A European Central Bank (ECB) official says America’s embrace of cryptocurrency and non-bank finance could backfire.
“The United States risks sinning through negligence,” Francois Villeroy de Galhau, a member of the bank’s governing council, said in an interview with French weekly La Tribune Dimanche on Saturday (March 15).
“Financial crises often originate in the United States 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.”
The U.S. government’s attitude toward cryptocurrency has changed under President Donald Trump. Trump championed the digital assets when running for office last summer, and has since pushed to make America the “crypto capital of the world” by calling for the creation of a Strategic Bitcoin Reserve
Meanwhile, the Securities and Exchange Commission (SEC) seems to be rolling back its regulatory crackdown on the crypto sector, having dismissed several cases against crypto platforms since Trump’s inauguration.
As PYMNTS wrote recently, this change has upended the dynamic between America and Europe in how they approach crypto.
“The initial contrast between the rules-based approach to cryptocurrency in the European Union and the enforcement-driven strategy in the United States was once thought to shape the global crypto industry’s trajectory,” that report said.
All the same, the EU’s structured Markets in Crypto-Assets Regulation (MiCA) policy framework, designed to harmonizing the fragmented regulatory landscape across the EU’s 27 member states, is already in place and continues to guide the some of the largest crypto companies in one of the biggest economic regions in the world.
“MiCA’s applications, and its endemic speedbumps, could hold many lessons for an eventual U.S. regulatory environment,” PYMNTS wrote.
Since MiCA’s approval in 2023 — the rule is being implemented in phases — market players have been hurrying to comply with its provisions. Crypto exchanges, stablecoin issuers and wallet providers now face strict licensing requirements, capital reserves standards and clear consumer protection rules.
While MiCA is designed to streamline crypto operations, it poses obstacles for existing virtual asset service providers (VASPs). All VASPs who were registered in the EU before 2025 must comply with MiCA requirements this year.
“Predictions suggest that around 75% of these VASPs may struggle to meet the new standards. Factors such as company size, compliance costs and requirements contribute to this potential contraction,” PYMNTS wrote.
“For example, many registered VASPs are small enterprises that may lack the resources to fulfill MiCA’s rigorous demands, including substantial share capital requirements and comprehensive compliance frameworks.”
Finance
The New Hampshire Business Finance Authority honors lenders at the 5th annual Granite State Awards
Cardano founder Charles Hoskinson has responded to renewed criticism about the network’s total value locked (TVL) and relatively sluggish decentralized finance (DeFi) growth.
On October 31, Hoskinson acknowledged the gap between Cardano’s DeFi activity and leading blockchains like Ethereum and Solana. However, he said the numbers fail to capture the network’s broader participation and governance strength.
Sponsored
Cardano Bets on Bitcoin Interoperability to Unlock Billions in DeFi Liquidity
Hoskinson pushed back on the long-standing belief that introducing major stablecoins such as USDT or USDC would automatically transform Cardano’s DeFi ecosystem.
“No one’s ever made the argument and explained how the existence of one of these larger stablecoins is magically going to make Cardano’s entire DeFi problem go away, make the price go up, massively improve our MAUs, our TVL, and all these other things,” he said.
He argued that their arrival alone would not solve the network’s structural challenges or guarantee growth.
According to him, Cardano already has native, asset-backed stablecoins like USDM and USDA that can be minted at will and rarely lose their peg.
Instead, Hoskinson pointed to user behavior as the main reason Cardano’s DeFi TVL remains small.
For context, he noted that the network has about 1.3 million users who stake or participate in governance, collectively holding more than $15 billion in ADA.
However, those figures don’t count toward TVL metrics, and most ADA holders remain passive participants rather than active liquidity providers.
“Cardano has a fertile ecosystem. There’s a lot of people floating around. There’s a lot of people who hold ADA, who have Cardano wallets, who have been in our ecosystem — in many cases more than five years. But not a lot of those people have crossed the chasm to use DeFi in Cardano,” he stated.
Sponsored
He added that this distinction creates a “chicken-and-egg” loop for Cardano’s ecosystem. According to Hoskinson, the network’s low activity deters partnerships and liquidity, while the lack of external integrations further limits on-chain adoption.
To counter these limitations, Hoskinson outlined a multi-year roadmap that ties DeFi growth to real-world finance and Bitcoin interoperability.
He highlighted the Midnight network—a privacy-focused sidechain—and RealFi, a microfinance platform targeting African markets, as key initiatives.
Both will integrate with Bitcoin DeFi, allowing ADA and BTC to be lent, converted into stablecoins, and used in real-world lending products.
Sponsored
Hoskinson expects this combination to drive “billions of dollars” in new liquidity while attracting Bitcoin’s vast capital base. He also cited ongoing projects such as Leios, as proof that Cardano continues to evolve at the protocol level.
Still, he conceded that Cardano’s core issue is coordination and accountability, not technology.
“It’s not a technology problem. It’s not a node problem. It’s not a problem of imagination and creativity. It’s not a problem of execution. We can pretty much do anything. It’s a problem of governance and coordination and ultimately accountability and responsibility,” Hoskinson said.
To fix this, he proposed delegating clear responsibility for ecosystem expansion. He also called for targeted marketing and event strategies to mobilize ADA holders toward DeFi participation.
“The problem isn’t the ability to do a marketing campaign. The problem isn’t our ability to ship great software. It’s that there’s no one accountable to actually conceive of it, execute it, and be held accountable to the outcome of it. That’s the problem in a nutshell. So that is the problem we have to solve next year as we look to 2026,” He stated.
News24 minutes ago
Trump Backs Cuomo, Threatens NYC Funds If Mamdani Wins – The Source with Kaitlan Collins – Podcast on CNN Podcasts
West34 minutes ago
Marc Benioff urges Trump to deploy National Guard in San Francisco after donating millions to liberal causes
Midwest44 minutes ago
Illinois man allegedly threatens Trump execution in profanity-laced videos, faces federal charges
Southwest54 minutes ago
Officer’s smooth dance moves convince partygoers to turn down music
Southeast1 hour ago
VA Dems reject resolution condemning political violence while House speaker cuts off Jay Jones references
-
Milwaukee, WI6 days agoLongtime anchor Shannon Sims is leaving Milwaukee’s WTMJ-TV (Channel 4)
-
News7 days agoWith food stamps set to dry up Nov. 1, SNAP recipients say they fear what’s next
-
Alabama1 week agoHow did former Alabama basketball star Mark Sears do in NBA debut with Milwaukee Bucks?
-
News1 week ago1 dead, 6 injured in shooting at Lincoln University homecoming festivities
-
Austin, TX1 week agoDia De Los Muertos Austin: Parades, Altars & Events
-
Culture5 days agoVideo: Dissecting Three Stephen King Adaptations
-
Seattle, WA6 days agoFOX 13’s Aaron Levine wins back-to-back Jeopardy! episodes
-
Culture1 week agoVideo: Tyler Mitchell Breaks Down Three Photos From His New Book