‘European SEC’ proposal sparks licensing concerns, institutional ambitions
A European Commission proposal to grant ESMA direct licensing and supervisory powers over CASPs raises concerns about slower startup development.Summary
The European Commission has proposed expanding the European Securities and Markets Authority's (ESMA) powers, granting it direct supervisory and licensing authority over key market infrastructure, including crypto-asset service providers (CASPs), trading venues, and central counterparties. This move, which would make ESMA's role resemble the US SEC, aims to harmonize disparate national supervisory practices and boost the EU's capital markets competitiveness against the US. However, industry figures express concern that centralizing licensing under ESMA could lead to slower regulatory processes, potentially hindering the development of fintech and crypto startups due to resource constraints or overly cautious assessments. The proposal is currently under negotiation between the European Parliament and the Council.
(Source：Cointelegraph)