Italy Warns of Global Finance Shock Amid Trump-Fueled Crypto Rally

The crypto market is booming again—but not everyone is celebrating. Italy’s central bank has issued a sharp warning, saying the renewed surge in digital assets could pose serious risks to global financial stability.

What’s driving the rally? A familiar name is back in power and he’s bringing crypto with him. Donald Trump’s return to the White House, along with bold moves from his camp, is shaking up both markets and regulators.

As crypto prices climb and political support grows louder, Italy’s concerns hint at deeper tensions beneath the surface. Here’s what’s really happening.

Trump’s Return Sparks Crypto Rally

According to a recent report, Bitcoin led a market-wide surge after Trump re-entered the political stage with a pro-crypto agenda. His comeback helped propel the total crypto market capitalization to $2.75 trillion by March, with Bitcoin accounting for over 60% of that value.

Contributing to the momentum is Trump Media & Technology Group’s announcement of a utility token and digital wallet to expand its Truth+ streaming service. This move has further reinforced perceptions of a crypto-friendly administration.

Italy Raises Concerns Over Dollar-Based Stablecoins

Italy’s central bank is particularly concerned about the growing dominance of dollar-backed stablecoins such as USDT (Tether) and USDC (Circle). These tokens are pegged to U.S. Treasuries, and officials warn that mass redemptions could destabilize global bond markets.

“If large-scale withdrawals occur, it could trigger a shock across both U.S. and international financial systems,” the bank cautioned.

MiCA Regulation May Fall Short, Say European Officials

Despite the EU implementing its MiCA Regulation (Markets in Crypto-Assets Regulation), Italian authorities fear it may not be sufficient to counter the rapid spread of crypto assets, especially stablecoins tied to the U.S. dollar. ECB President Christine Lagarde has echoed concerns that the euro’s influence could weaken if stablecoin adoption continues at its current pace.

Italy is calling for deeper global cooperation to prevent systemic risks as crypto usage expands beyond tightly regulated sectors.

U.S. Oversight Also Under Scrutiny

In the United States, regulatory concerns are also mounting. President Trump has reportedly appointed pro-crypto officials to key regulatory positions and disbanded a Justice Department unit that previously focused on investigating crypto-related fraud.

Adding to the controversy, Trump’s sons are supporting a new stablecoin, coinciding with the advancement of the GENIUS Act, a legislative proposal that critics argue could loosen crypto oversight and weaken investor protections.