Risk of disorderly corrections mounting, says ESMA

Global climate policy is fragmented, cyber risks are increasing, and the rise of stablecoins means spillover risk of a crypto correction, per a report by the agency.

Persistent heightened geopolitical risk, including the conflict with Iran, has been identified as a driver of volatility with the potential to significantly affect financial markets, says ESMA. The regulator highlighted this issue in its first risk monitoring report of 2026.

Verena Ross, ESMA’s chair, said that the regulator’s analysis calls out

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