France’s Central Bank Governor Warns Trump’s Pro-Crypto Stance May Spark Financial Crisis

The governor of France’s central bank, Francois Villeroy de Galhau, has expressed serious concerns about the United States’ approach to cryptocurrency regulation under President Donald Trump. In an interview, Villeroy de Galhau warned that Trump’s pro-crypto stance could potentially lead to significant economic problems, including another financial crisis.

Villeroy de Galhau highlighted that financial crises often originate in the United States before spreading globally. He cautioned that by encouraging crypto-assets and non-bank finance, the American administration is "sowing the seeds of future upheavals." He reminded readers that three of the five biggest financial crises in history began in the United States, including The Great Depression, the OPEC Oil Price Shock of 1973, and the Great Recession.

This is not the first time Villeroy de Galhau has criticized Trump’s economic policies. Even before Trump’s inauguration, he voiced concerns about American financial policy, stating that the lack of regulation of non-banks and crypto-assets could put financial stability at risk. He has also described Trump’s trade wars and economic approach as "a tragedy for the American economy."

Since Trump took office, there has been a notable shift in the US approach to digital assets. The Securities and Exchange Commission (SEC) has dropped major cases against crypto exchanges, and the administration has created a "crypto strategic reserve," involving the stockpiling of popular cryptocurrencies like Bitcoin and Ethereum. These moves represent a significant change from the stricter stance taken by regulatory agencies under the previous administration.

Villeroy de Galhau believes the current trend toward deregulation in the US is highly risky. He stated that the current wave of American deregulation is dangerous. His comments come at a time of growing tension between European financial authorities and the Trump administration over various economic policies. European officials have expressed worry about the global impacts of US financial decisions, and the stark differences in regulatory approaches to cryptocurrency between Europe and the US may create challenges for companies operating across both markets.

Trump’s pro-crypto stance was a feature of his campaign, where he promised to make the US "the crypto capital of the planet." His administration has moved quickly to implement policies aligned with this goal. However, financial experts remain divided on whether the US approach will lead to innovation or instability. Villeroy de Galhau clearly believes the risks outweigh the potential rewards.