Fabio Panetta, Governor of Banca d’Italia, has emphasized the need for careful evaluation of regulatory divergences between the United States and Europe concerning crypto-assets to understand their global implications. This statement was made during a speech on February 15.
"These regulatory divergences between the United States and Europe will need to be carefully assessed, once the US authorities' position becomes clearer, in order to understand their international implications," said Panetta. "Regulatory arbitrage in this field may be particularly insidious and difficult to counter: some operators might exploit regulatory differences to adopt less-than-transparent or highly risky practices,"
According to Panetta, Europe has adopted a structured framework under the Markets in Crypto-Assets Regulation (MiCAR), while the U.S. continues to regulate on a case-by-case basis. He noted that the Biden administration had largely maintained a cautious stance on crypto; however, recent developments, including an executive order from the Trump administration on digital financial technology, suggest a shift toward greater integration of crypto into the financial system.
In January, President Trump signed Executive Order 14178, titled "Strengthening American Leadership in Digital Financial Technology," which supports the growth of digital assets and blockchain technologies. This order revokes previous policies considered restrictive, such as Executive Order 14067 from March 2022. Additionally, it establishes a working group tasked with proposing a federal regulatory framework for digital assets within 180 days.
Analysts suggest that Europe's strict regulatory framework for cryptocurrencies could limit industry growth compared to more flexible approaches in other regions. Bloomberg reports that the European Securities and Markets Authority (ESMA) has expressed concerns about resource constraints affecting the implementation of crypto regulations. In contrast, recent policy shifts in the U.S., including initiatives under the Trump administration, have focused on integrating crypto into the financial system—a move some industry participants view as a competitive advantage.
Panetta serves as Governor of Banca d’Italia and previously sat on the Executive Board of the European Central Bank (ECB). Throughout his career, he has been involved in financial regulation, monetary policy, and discussions on digital currencies, banking oversight, and financial stability. Before becoming Governor, he was Senior Deputy Governor of Banca d’Italia and played a role in shaping European financial policy.
Banca d’Italia is Italy’s central bank responsible for overseeing monetary policy, financial stability, and banking supervision within the Eurosystem. According to its website, it operates under the ECB framework and regulates Italy’s financial sector to ensure compliance with EU banking laws. Additionally, it manages payment systems, enforces anti-money laundering policies, and supports digital finance initiatives.
