EU Moves to Centralize Oversight of Crypto and Stock Exchanges to Compete with US Markets
The European Commission has proposed placing stock and cryptocurrency exchanges under the direct supervision of the European Securities and Markets Authority (ESMA). This initiative aims to create a unified regulatory framework, reducing fragmentation and enhancing the EU's global market competitiveness. The plan mirrors the US Securities and Exchange Commission's structure, empowering ESMA to oversee cross-border entities like trading platforms and asset managers.
Christine Lagarde, European Central Bank President, supports the move, citing potential risk mitigation for large financial institutions operating across borders. The proposal aligns with the EU's broader 'capital markets union' strategy, designed to strengthen Europe's position in global finance. Regulatory clarity could also discourage European startups from seeking funding outside the continent.
