EU plan boosts ESMA powers over crypto and capital markets

The European Commission has proposed a package to significantly expand the powers of the European Securities and Markets Authority (ESMA) over key market infrastructure, including crypto-asset service providers (CASPs), trading venues, and central counterparties, granting it direct supervisory competences. This move aims to narrow the competitive gap between the EU and the United States, making ESMA's oversight more centralized, similar to the US Securities and Exchange Commission. The proposal follows calls from France, Austria, and Italy for ESMA to supervise major crypto firms due to concerns over laxer regulations in some jurisdictions, like Malta. While the goal is to streamline markets and boost wealth creation—noting EU stock market capitalization is only 73% of GDP versus 270% in the US—some industry watchers worry that centralizing supervision entirely within ESMA could slow down innovation for smaller crypto and fintech companies.

(Source：Cointelegraph)