François Villeroy, the Governor of the Banque de France, recently issued a warning regarding U.S. economic policies, stating that the current push by President Trump to develop the cryptocurrency industry may be sowing the “seeds of a financial crisis.”
Banque de France Warns of Economic Risks: U.S. May Commit “Negligence”
In an interview with France’s La Tribune Dimanche, Villeroy remarked that the U.S. government’s support for the cryptocurrency industry, coupled with relaxed regulations for non-bank financial institutions, could trigger future financial turbulence:
“Financial crises often originate in the U.S. and then spread globally. The U.S. government’s encouragement of cryptocurrencies and non-bank financial institutions is planting the seeds for future turmoil.”
He also highlighted significant differences in financial regulation between Europe and the U.S., emphasizing that Europe’s regulatory framework is robust enough to protect the 27 EU member states from potential risks: “The European banking sector will not face a crisis or risk because of this.”
Historical Warnings: The U.S. Has Triggered Multiple Financial Crises
Villeroy pointed out that historically, the U.S. has been the source of several financial crises, including:
- 1929 Wall Street Crash: Triggered the Great Depression
- 1973 OPEC Oil Crisis: The Organization of the Petroleum Exporting Countries (OPEC) suspended oil exports to the U.S., causing market turmoil
- 2008 Financial Crisis: Triggered by the bursting of the U.S. housing bubble and the collapse of the banking system
He warned that the financial and trade policies of the Trump administration could once again push the global economy to the brink of danger: “Trump seems to hold a false view that the global economy is a zero-sum game.”
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European Central Bank Voices Criticism
It is noteworthy that this is not the first time Villeroy has publicly criticized Trump; as early as before Trump’s inauguration, he labeled Trump’s trade war and economic policies as “a tragedy for the U.S. economy”: “We sometimes hear about the lack of regulation concerning non-bank institutions, various funds, or crypto assets in the U.S., which could jeopardize financial stability.”
Moreover, he is not the only European official criticizing Trump’s policies; Joachim Nagel, President of the Bundesbank, recently remarked that Trump’s economic policies resemble a “horror movie,” suggesting that their impact should not be underestimated.
In this regard, Villeroy emphasized that Europe will continue to maintain strict financial regulations to ensure market stability.
Trump Doubles Down on Cryptocurrency Support
Since returning to the White House in January, the Trump administration has repeatedly expressed support for the cryptocurrency industry. Initially, it established a dedicated task force through an executive order and appointed former PayPal executive David Sacks as the first “AI Crypto Czar” for the U.S.
Additionally, the newly appointed acting head of the U.S. Securities and Exchange Commission (SEC), Mark Uyeda, has slowed or dismissed multiple lawsuits against cryptocurrency firms like Coinbase, Binance, and Robinhood.
Earlier this month, the Trump administration officially announced the establishment of a strategic Bitcoin reserve, cashing in on its long-promised political agenda, planning to stockpile Bitcoin and other cryptocurrencies seized through criminal and civil forfeiture as national assets.
However, mentions of including Ethereum (ETH), Solana (SOL), Cardano (ADA), and Ripple (XRP) have faded away, once again becoming mere market manipulation slogans.
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Tariff Wars Trigger Turmoil in U.S. Stocks and Crypto Markets
However, despite having the most crypto-friendly government in U.S. history, the Trump administration’s tariff policies have intensified market volatility. As concerns over a U.S. economic recession grow, U.S. stocks and crypto markets have seen significant declines in recent weeks. Wall Street investment banks JPMorgan and Goldman Sachs have raised their recession probability forecasts from 15% to 30% earlier this year, now projecting a 20% to 40% chance, indicating severe investor confidence erosion.
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Risk Warning
Investing in cryptocurrencies carries a high risk, and prices can be extremely volatile. You may lose your entire principal. Please carefully assess the risks.