ESMA warns crypto could pose risks to financial stability

The European Authority for Securities and Markets will sound a new caution on the potential risks that crypto could pose in the financial markets.

ESMA, the European Union securities guard dog, once again addressed the question of Cryptography RulesWarning that the risks linked to the crypto could have an impact on financial stability.

According to the director general of ESMA, Natasha Cazenave, this possibility has increased as the cryptocurrency industry records enormous growth in an additional case with traditional finance.

Cazenave commented the subject in a opening declaration At the hearing of the economic and monetary committee of the European Parliament on cryptocurrency and financial stability on April 8, 2025.

But while ESMA considers events in cryptographic asset markets as probable risks for financial stability in the future, the current impact is minimal.

Cazenave noted that the crypto remains a relatively small sector, representing only 1% of the total of world financial assets. There is also a “limited integration” with traditional finance and the real economy, the crypto not yet part of the world market for financial services, including payments. More than 95% of EU banks do not participate in the crypto, said Cazenave.

“The crypto-active markets are still relatively small. However, in the current market environment, disorders even on small markets can come or catalyze broader stability problems in our financial system, “she concluded.

ESMA’s new warning occurs a few months after the agency asked for the Radiation of stablescoins This remained not in accordance with the markets of the rules of cryptographic assets. Mica entered the complete work in December 2024 and the ESMA declaration followed quickly in January 2025.

While the EU market guard dog returns the subject of the risks of cryptographic assets, there is a marked change in regulators in the United States. The American Securities and Exchange committee has taken several positive measures to promote cryptographic innovation, a similar approach adopted by the administration of President Donald Trump.

The Ministry of Justice also announced that it was dissolved His national team for enforcing cryptocurrencies.