EU regulator Natasha Cazenave is basically warning the traditional finance world to buckle up. As crypto grows and cozies up with old-school markets, even a sudden plunge could cause a bit of a kerfuffle. Sure, crypto currently makes up only 1% of global financial assets—small potatoes for now—but future sharp drops could create a domino effect across the system, she warned in her April 8 statement.
Cazenave had a few cheeky points along the way, noting that while the European crypto scene might look like a party of rising retail investors (with about 10% to 20% of Europeans dipping their toes in crypto), over 95% of European banks are still playing it safe on the sidelines. Meanwhile, US markets are cruising at a higher crypto adoption rate—somewhere between 15% and 28% of the population.
Her list of potential misadventures isn’t short either, ranging from spot crypto ETFs and stablecoin hiccups to hacks, scams, and even scandals—remember that eye-watering $1.4 billion Bybit exploit and FTX’s infamous collapse in November 2022? According to Cazenave,
"Turmoil, even in small markets, can originate or catalyze broader stability issues in our financial system."
She did give a nod to the EU’s Markets in Crypto-Assets (MiCA) regulation as a "breakthrough" for crypto oversight, though she reminds us all that there’s "no such thing as a safe crypto-asset." With double-digit falls in both crypto and stock markets recently (all thanks to the Trump administration’s tariff plans), it looks like regulators aren’t about to take their foot off the gas when it comes to keeping an eye on crypto rodeo.
HODL Team
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