According to Elena Carletti, the deputy vice chair of UniCredit, Europe faces a significant disadvantage compared to the United States when it comes to managing the fallout from crypto-related banking failures. During the 2023 collapse of Silicon Valley Bank, U.S. regulators utilized a "systemic risk" exception to guarantee all deposits—including those linked to crypto firms—effectively preventing a wider contagion. Carletti warns that European authorities lack the flexibility to implement similar blanket protections, leaving the continent’s financial systems more exposed if a comparable crisis were to occur.

The core of the issue lies in the European Union’s MiCA regulation, which mandates that stablecoin issuers hold reserves in bank deposits or other liquid assets. While this policy aims to integrate digital assets with traditional finance, Carletti argues that it inadvertently creates a dangerous vulnerability. By forcing a structural alliance between the crypto industry and the banking sector without providing a corresponding safety net of deposit insurance, European regulators may have created a "double form of weakness" that could threaten broader financial stability during periods of market turmoil.