The EU is moving toward a major overhaul of its financial supervision framework, which could give the European Securities and Markets Authority (ESMA) new powers over crypto companies and trading venues.
In an interview with the Financial Times, ESMA Chair Verena Ross said the initiative aims to reduce regulatory fragmentation across the bloc and build a more unified capital market that can compete globally.
At present, oversight is shared among 27 national authorities. According to Ross, each country must maintain its own supervisory structures and expertise, which leads to duplication, uneven enforcement of rules, and inconsistent decisions.
Internal Concerns Across the EU
The proposal to expand ESMA’s authority has drawn pushback from several smaller jurisdictions, including Luxembourg, Malta, and Ireland, which host large financial hubs.
At the same time, Ross noted that the EU’s need to attract private capital to finance strategic priorities – defense, green energy, and digital transformation – has strengthened support for a more centralized supervisory model.
First Steps Toward Reform
The Paris-based agency has already received new mandates following the publication of former ECB President Mario Draghi’s report, which described a single European regulator as “a key element” of capital market development.
Starting in 2026, ESMA will oversee providers of consolidated trade data for equities and bonds, as well as firms issuing ESG ratings.
Brussels is also considering transferring oversight of major cross-border participants – including stock exchanges, crypto firms, and clearing houses – to ESMA.
The idea of granting ESMA authority over the crypto sector was first discussed during the drafting of the MiCA regulation, which came into force in 2024. However, amid concerns over the agency’s capacity to handle the workload, direct supervision remained with national regulators.
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