Share this article
ECB Warns That Crypto Risks Could Spill Over Into Wider Economy
Given the increasing risks of crypto, it is important to bring it into the regulatory perimeter as a matter of urgency, the European Central Bank said in a report.
Updated May 11, 2023, 6:17 p.m. Published May 24, 2022, 9:27 a.m.
More financial institutions engaging with crypto or digital assets being used as a form of payment could increase "spillover to the wider economy" the European Central Bank wrote in a report on Tuesday.
Regulators have been turning their heads toward the devastating collapse of the Terra blockchain coins, which put into question the stability of algorithmic stablecoins like UST, which are not backed by a fiat currency.
STORY CONTINUES BELOW
"Given the speed of crypto developments and the increasing risks, it is important to bring crypto-assets into the regulatory perimeter and under supervision as a matter of urgency," the ECB said.
The European Union is currently putting together legislation to regulate cryptocurrencies called the Markets in Crypto Assets package.
European Central Bank officials have highlighted the risks of crypto before. The bank's President Christine Lagarde said recently that crypto had been a threat in the past and still is.
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
CFTC's acting chief Pham poised to go to crypto firm MoonPay once Mike Selig lands
The leader of the derivatives regulator is planning to join the crypto industry as the CFTC and other federal regulators work on policies to benefit the sector.
What to know:
- Commodity Futures Trading Commission Acting Chairman Caroline Pham confirmed again that she's heading to crypto firm MoonPay when the Senate confirms her replacement and he's sworn in.
- President Donald Trump's CFTC chair nominee Mike Selig was set for a Senate vote Wednesday evening, according to that chamber's schedule.
- Selig, currently an SEC official, would arrive at the CFTC just as several of Pham's crypto initiatives have gone live.
Top Stories
