EU Proposes Expanding ESMA’s Crypto Oversight Powers Under MiCA Reform
The European Union is advancing a proposal to grant ESMA direct supervisory authority over cryptocurrency asset service providers (CASPs) and trading platforms. This move, part of the Markets in Crypto-Assets (MiCA) framework, aims to centralize oversight and address regulatory gaps exposed by previous regimes like Malta’s.
The reform would align EU crypto supervision closer to the SEC’s centralized model, with particular attention to stablecoins like USDT. The changes could create ripple effects across digital assets, potentially benefiting Bitcoin or the upcoming digital euro.
Negotiations remain ongoing in the European Parliament, with adoption timelines uncertain. The proposal reflects Brussels’ push to keep pace with U.S. regulatory developments while maintaining control over financial market infrastructures.
