The European Securities and Markets Authority warned that growing connections between crypto markets and traditional finance could amplify financial stress, citing tokenized equities and decentralized-finance exploits as key transmission channels. The regulator's broader risk monitoring has also highlighted prediction-market manipulation concerns, fragmented EU rules and the expansion of institutional crypto products. More than 1,000 perpetual-futures markets now cover real-world assets, with public equities accounting for roughly three-quarters, while tokenized equities were valued at about EUR1.9 billion at the end of June. Bitcoin traded near $76,943 on Sept. 11, down 1.3% on the day and 5.3% over the week, although ESMA did not describe a current crisis. The warning indicates that European supervisors are scrutinizing whether on-chain products and DeFi collateral have become sufficiently connected to regulated markets to spread losses across both sectors.