| Mobile Web

Crypto risks rise as market ties with Wall Street grow, European regulators warn

The European Securities and Markets Authority warned that as links between crypto markets and traditional finance expand, shocks in one area could increasingly spread across the broader financial system. In its second Trends, Risks and Vulnerabilities report for 2026, ESMA said the growing connections between a more fragile crypto market and the wider financial system require closer monitoring. It highlighted tokenised stocks, decentralised finance hacks and prediction markets as key risk factors.