Europe Moves to Centralize Crypto Regulation Under ESMA, Mirroring SEC Powers
European regulators are tightening their grip on cryptocurrency markets with a proposed overhaul that would grant the European Securities and Markets Authority (ESMA) powers akin to the U.S. Securities and Exchange Commission. The reform, unveiled on December 4, 2025, aims to unify oversight of digital assets and traditional finance under a single framework—bolstering the EU’s competitiveness against the $62 trillion U.S. capital markets.
Startups and blockchain projects warn of stifled innovation, citing potential delays in approvals and bureaucratic hurdles. The push for harmonization faces resistance from member states skeptical of centralized control. Maria Luís Albuquerque, the EU Commissioner leading the initiative, frames it as a necessary step to counter fragmentation and align with global standards.
