EU mulls SEC-like oversight for stock, crypto exchanges to bolster startup landscape

The European Commission is reportedly drafting a proposal to centralize supervision of stock and cryptocurrency exchanges, as well as crypto asset service providers, under the European Securities and Markets Authority (ESMA). This move aims to make the EU's capital markets more competitive, particularly against the US, by addressing the fragmentation caused by numerous national regulatory agencies that increase cross-border trade costs and hinder startup growth. The plan aligns with suggestions from ECB President Christine Lagarde, who advocated for an "European SEC" with broad, direct supervisory powers to mitigate systemic risks. The proposal, expected in December, would also grant ESMA final, binding decision-making authority in disputes between asset managers. Furthermore, centralizing supervision under ESMA could resolve concerns over regulatory arbitrage, such as France's threat to block license "passporting" under the MiCA regulation due to perceived enforcement gaps.

(Source：Cointelegraph)