EU Plans to Give Single Regulator Control Over All Crypto Exchanges
The European Commission is moving to centralize oversight of cryptocurrency platforms under the European Securities and Markets Authority (ESMA), effectively creating a "European SEC" modeled after the U.S. Securities and Exchange Commission. The proposal, set for publication in December 2025 as part of a broader Market Integration Package, aims to replace fragmented national supervision with unified regulation by late 2026.
Current enforcement inconsistencies under MiCA's passporting system have exposed regulatory arbitrage risks, with firms allegedly seeking approvals from lenient national authorities like Malta's Financial Services Authority before operating EU-wide. ESMA chair Verena Ross highlights the inefficiency of 27 member states each building separate crypto supervision teams when a centralized approach could achieve greater consistency.
