• Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
Stock

Italy flags risks in $2.75T crypto rally tied to Trump-era stablecoin boom

by April 30, 2025
by April 30, 2025

Italy’s central bank has raised concerns about potential financial instability as the global cryptocurrency market cap surged past $2.75 trillion in March 2025, led by Bitcoin’s dominance and fresh political momentum from President Donald Trump.

The warning comes amid a sharp revival in digital asset valuations following Trump’s return to office and his administration’s perceived support for the crypto industry.

Bitcoin alone now makes up more than 60% of the entire market, with prices nearing their all-time high.

The renewed rally has been accompanied by a surge in stablecoin adoption, especially USDT and USDC, which are widely used as trading pairs on crypto exchanges.

Italian regulators fear this stablecoin growth could strain the global financial system, especially during times of market stress.

Trump fuels crypto resurgence with policy and media moves

The current bull run in crypto markets is closely tied to political developments in the United States.

Since re-entering office in January 2025, President Trump has promoted a more accommodative stance on digital assets.

The Trump Media & Technology Group, a company affiliated with the president, announced the upcoming launch of a utility token and integrated digital wallet to support its Truth+ streaming platform.

This announcement followed months of speculation about a Trump-linked token initiative, and coincided with the broader rally in digital assets.

Analysts suggest that the perception of a crypto-friendly administration is helping to attract institutional and retail capital back into the market.

At the same time, Trump’s appointment of pro-crypto regulators and the disbandment of a Department of Justice task force on crypto fraud have raised questions about the level of oversight in the world’s largest economy.

These developments are fuelling optimism among investors, while also drawing criticism from watchdogs and financial regulators globally.

Italy and the EU fear stablecoin spillover effects

Italy’s central bank has highlighted the growing risk that dollar-pegged stablecoins pose to international financial stability.

These digital tokens are largely backed by US.

Treasury securities, and officials warn that any mass redemption or sudden liquidity crisis could create ripple effects across sovereign bond markets.

A recent statement from the Italian authorities noted that stablecoins, while useful for liquidity and payments, represent a “channel of contagion” that could link crypto markets directly to the traditional financial system.

In particular, concerns are growing that the euro could lose relevance if stablecoin use continues to expand in Europe.

Despite the EU introducing the Markets in Crypto-Assets Regulation (MiCA), which aims to harmonise digital asset rules across member states, some policymakers feel that the current legal framework lacks the scope to address fast-moving developments in decentralised finance and cross-border token flows.

ECB President Christine Lagarde has previously stressed the need for coordinated global regulation, warning that “fragmented oversight” will not be sufficient to contain the systemic risks posed by digital currencies and private stablecoin issuers.

US regulation under Trump faces criticism

The US regulatory environment is also shifting under Trump’s leadership.

The president’s recent decisions, including removing certain crypto enforcement initiatives and backing a more lenient approach to stablecoins, have sparked controversy within the financial community.

A new legislative effort, the GENIUS Act, is also under review in Congress.

The bill proposes to create a national framework for stablecoin issuance and circulation but has been criticised by some lawmakers and economists for reducing the ability of federal agencies to respond to emerging risks.

Meanwhile, members of the Trump family have expressed public support for a new stablecoin venture.

This move has intensified scrutiny over potential conflicts of interest, as well as concerns over how closely politics and digital assets are becoming intertwined in the United States.

As crypto markets gain traction once again, European regulators are urging global coordination to prevent another potential crisis.

With digital assets now embedded in both political strategies and financial products, the call for robust international oversight is growing louder.

The post Italy flags risks in $2.75T crypto rally tied to Trump-era stablecoin boom appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
SoFi plans crypto comeback within 6 months, says CEO Anthony Noto
next post
PepeX presale raises $1 million as AI launchpad eyes Q3 token listing

Related Posts

Cristiano Ronaldo joins the billionaire club, net worth...

October 8, 2025

Elon Musk’s xAI secures $20B boost as Nvidia,...

October 8, 2025

SoftBank to acquire ABB’s robotics unit for $5.4B...

October 8, 2025

European stocks open higher: CAC 40 climbs 0.11%,...

October 8, 2025

EU steel tariff surge threatens UK exports and...

October 8, 2025

Why Tata Motors stock remains in the red...

October 8, 2025

Asian markets open: Nikkei hits another record high,...

October 7, 2025

Top reasons why the Topix and Nikkei 225...

October 7, 2025

Goldman Sachs boosts 2026 gold price forecast to...

October 7, 2025

Beijing intensifies oil stockpiling amid global supply and...

October 7, 2025

Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.

By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

Recent Posts

  • Rent Control Will Make the Housing Crisis Worse

    October 8, 2025
  • Gold’s Acceleration Reveals Vanishing Calm, Coming Change

    October 8, 2025
  • Why the Erosion of Central Bank Independence Matters

    October 8, 2025
  • Cristiano Ronaldo joins the billionaire club, net worth hits $1.4B

    October 8, 2025
  • Elon Musk’s xAI secures $20B boost as Nvidia, Apollo, and Valor back data centre expansion

    October 8, 2025
  • SoftBank to acquire ABB’s robotics unit for $5.4B in AI push

    October 8, 2025

Editors’ Picks

  • 1

    Meta executives eligible for 200% salary bonus under new pay structure

    February 21, 2025
  • 2

    Walmart earnings preview: What to expect before Thursday’s opening bell

    February 20, 2025
  • 3

    New FBI leader Kash Patel tapped to run ATF as acting director

    February 23, 2025
  • 4

    Cramer reveals a sub-sector of technology that can withstand Trump tariffs

    March 1, 2025
  • 5

    Anthropic’s newly released Claude 3.7 Sonnet can ‘think’ as long as the user wants before giving an answer

    February 25, 2025
  • 6

    Nvidia’s investment in SoundHound wasn’t all that significant after all

    March 1, 2025
  • 7

    Pop Mart reports 188% profit surge, plans aggressive global expansion

    March 26, 2025

Categories

  • Economy (2,815)
  • Editor's Pick (280)
  • Investing (185)
  • Stock (1,920)
  • About us
  • Contact us
  • Privacy Policy
  • Terms & Conditions

Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Read alsox

Bitcoin Pepe hits $0.0326 as presale raises...

May 15, 2025

BTC ETFs end 4-day outflow streak with...

March 14, 2025

Top catalysts for Dow Jones Index this...

June 22, 2025