There's growing tension between Washington and Europe over how to handle central banks. A senior German official just warned that Trump's approach to pressuring the Federal Reserve could set a dangerous precedent—and Europe shouldn't follow suit.

The concern isn't academic. When political figures actively lobby their central banks for looser monetary policy, it can undermine institutional credibility and create long-term market instability. It's especially risky in times of economic uncertainty, where investors rely on central bank independence to maintain policy consistency.

For the crypto space, this matters more than it might seem. Central bank decisions directly influence interest rates, liquidity conditions, and risk appetite across markets. A politicized Fed or ECB could mean more erratic policy shifts, higher volatility, and unpredictable swings in crypto valuations tied to broader macro sentiment.

Europe's push to maintain central bank autonomy reflects a different philosophy—one that prioritizes institutional stability over short-term political goals. Whether that stance holds under pressure from larger economies remains an open question.