“Sowing Seeds of Crisis”: French Central Bank Governor Blasts Trump’s Crypto Love

TLDR

• French central bank governor Villeroy de Galhau warns Trump’s crypto support could trigger financial crisis
• He states the US is “sowing the seeds of future upheavals” by encouraging crypto-assets
• US has shifted to pro-crypto policies, creating a strategic reserve of Bitcoin and Ethereum
• SEC has dropped major cases against crypto exchanges under Trump administration
• Villeroy de Galhau calls current US deregulation “dangerous” and has been critical of Trump’s economic policies

The governor of France’s central bank has issued a stark warning about the United States’ approach to cryptocurrency regulation under President Donald Trump. Francois Villeroy de Galhau, who leads the Banque de France and serves as a member of the European Central Bank Governing Council, believes that Trump’s pro-crypto stance could lead to serious economic problems.

In an interview with French weekly La Tribune Dimanche, Villeroy de Galhau expressed concern that the US might be setting itself up for another financial crisis. “The United States risks sinning through negligence,” he stated in the interview published on March 16.

He pointed out that financial crises often start in America before spreading worldwide.

“By encouraging crypto-assets and non-bank finance, the American administration is sowing the seeds of future upheavals,” Villeroy de Galhau warned.

The French banker reminded readers that three of the five biggest financial crises in history began in the United States. These include The Great Depression following the 1929 Wall Street crash, the OPEC Oil Price Shock of 1973, and the Great Recession triggered by the collapse of the US housing market.

This is not the first time Villeroy de Galhau has spoken out against Trump’s economic approaches. Even before Trump’s January inauguration, he voiced concerns about American financial policy.

On January 15, he said,

“I believe that what we sometimes hear in the United States about the lack of regulation of non-banks, the various funds or the lack of regulation of crypto-assets is something that would put financial stability at risk.”

The French central banker has been openly critical of Trump’s broader economic policies as well. Earlier this week, he described Trump’s trade wars and economic approach as “a tragedy for the American economy.”

Villeroy de Galhau is not alone in his criticism. German central bank chief Joachim Nagel has also spoken out, calling Trump’s economic policy “economic policy from a horror show.”

Shift in Crypto Policy

Since Trump took office, there has been a clear shift in how the US handles digital assets. The Securities and Exchange Commission (SEC) has dropped major cases against crypto exchanges, including Coinbase.

Trump has also created what his administration calls a “crypto strategic reserve.” This plan involves the United States stockpiling popular cryptocurrencies like Bitcoin and Ethereum.

These moves represent a dramatic change from previous US approaches to digital currency regulation. Under the Biden administration, regulatory agencies had taken a much stricter stance toward the crypto industry.

The French central banker believes the current trend toward deregulation in America is highly risky. “The current wave of American deregulation is dangerous,” he stated in the interview.

Villeroy de Galhau’s comments come at a time of growing tension between European financial authorities and the Trump administration over various economic policies. European officials have increasingly expressed worry about the global impacts of US financial decisions.

The stark differences in regulatory approaches to cryptocurrency between Europe and the US may create challenges for companies operating across both markets. European authorities have generally maintained stricter oversight of digital assets.

Trump’s pro-crypto stance was a feature of his campaign, where he promised to make America “the crypto capital of the planet.” His administration has moved quickly to implement policies aligned with this goal.

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.