ESMA Set to Take Over Crypto Supervision in Push for Stronger EU Regulation

The European Commission has proposed a significant shift in financial market oversight, granting the European Securities and Markets Authority (ESMA) expanded powers over crypto-asset service providers (CASPs), trading venues, and central counterparties. This MOVE aims to enhance the competitiveness of EU capital markets and align them more closely with U.S. regulatory standards.

Under the new proposal, ESMA would centralize supervision of crypto markets, streamlining fragmented national regulations. The authority's role would mirror that of the U.S. Securities and Exchange Commission, ensuring consistent oversight across the bloc. France and Italy have already voiced support for ESMA's expanded mandate.

If approved by the European Parliament and Council, ESMA will gain direct supervision over crypto firms and key financial infrastructure. This development marks a pivotal step toward unified crypto regulations in the EU, potentially reshaping the operational landscape for digital asset service providers.