EU’s Plan to Expand ESMA Powers Sparks Debate Over Crypto Innovation and Market Control
The European Commission's proposal to enhance the European Securities and Markets Authority's (ESMA) oversight of crypto firms has ignited a fierce debate. Advocates argue centralized supervision will bolster cybersecurity and regulatory consistency across member states. Critics counter that rigid EU-wide control risks stifling fintech innovation and market agility.
At stake is Europe's ability to balance investor protection with technological progress. The draft legislation, expected in December, WOULD mark a pivotal shift in crypto governance—either streamlining fragmented national regimes or creating bureaucratic bottlenecks. Market participants await details on how ESMA's expanded mandate might interact with existing frameworks like MiCA.
