Online reports that the European Securities and Markets Authority said that the U.S.'s cryptocurrency-friendly stance may increase the level of risk in financial markets by deepening the connection between traditional finance (TradFi) and the digital asset economy. In a joint report, ESMA, the European Banking Authority and the European Insurance and Occupational Pension Authority noted that "the valuation of crypto assets fluctuated driven by expectations of the U.S. deregulation policy agenda and increasing connectivity with traditional financial markets.", is a key driver of financial markets. A spokesperson for the EU's financial market regulator said in an interview: "This cryptocurrency-friendly stance has the potential to accelerate the adoption of cryptocurrencies, including by institutional investors. This in turn will increase connectivity, and without relevant safeguards, there may be negative spillover effects between cryptocurrencies and traditional markets."