EU markets regulator says crypto may cause ‘broader stability issues’ as market grows

The European Securities and Markets Authority (ESMA) has warned that crypto will increasingly threaten traditional financial markets’ stability as the industry grows and becomes more entwined with traditional finance players. “We cannot rule out that future sharp drops in crypto prices could have knock-on effects on our financial system,” ESMA’s executive director Natasha Cazenave said in an April 8 statement to the Economic and Monetary Affairs Committee. Cazenave noted, however, that crypto currently only accounts for 1% of global financial assets and is not yet significant enough to cause major “spillover effects” into traditional financial markets. She warned that interconnections between crypto and traditional markets are rapidly growing — particularly in the more crypto-friendly US — and called for closer monitoring source: https://cointelegraph.com/news/eu-markets-regulator-warns-crypto-may-bring-broader-stability-issues?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound