UniCredit warns Europe may struggle to contain crypto-bank crisis under MiCA rules
CoinDesk
UniCredit warns that European crisis tools may be insufficient to contain financial shocks involving crypto firms compared to U.S. measures.Summary
Elena Carletti of UniCredit warns that European regulatory frameworks, specifically under MiCA, may lack the flexibility to manage financial contagion between crypto firms and banks. Unlike the U.S., where regulators protected all deposits following the 2023 collapses of Silicon Valley Bank and Signature Bank, Europe’s deposit guarantee system is generally capped at 100,000 euros. Carletti argues that forcing stablecoin issuers to hold reserves in traditional banks creates a vulnerability, as these deposits might not be fully protected during a market crisis.
(Source：CoinDesk)