The European Union is preparing a proposal to expand the powers of the European Securities and Markets Authority (ESMA), aiming to unify financial supervision and strengthen its capital markets.
The European Union is reportedly drafting a plan to bring stock and cryptocurrency exchanges under centralized supervision, marking a potential shift toward a more integrated capital market framework. The move seeks to streamline regulation, reduce cross-border trading costs, and bolster the region’s startup ecosystem, making the EU more competitive against the United States.
A Push Toward Centralized Financial Oversight
According to sources familiar with the matter, the proposal — expected to be released in December 2025 — would grant the European Securities and Markets Authority (ESMA) new authority over stock exchanges, crypto asset service providers, and other trading entities.
Currently, the EU’s financial system relies on multiple national regulators, which has led to fragmentation and higher costs for startups operating across borders.
European Central Bank President Christine Lagarde has long supported the idea of a stronger, centralized regulator.
France and the MiCA Enforcement Debate
The plan also comes amid growing tension over the Markets in Crypto-Assets Regulation (MiCA). In September 2025, France’s financial watchdog warned it might block license ‘passporting’, which allows crypto firms authorized in one EU country to operate across the bloc.
France’s stance reflects fears that some countries may apply lighter oversight, creating uneven enforcement. France, Austria, and Italy have since urged that ESMA take direct control of major crypto company supervision to ensure uniform standards.
Under MiCA, which began applying to crypto-asset service providers in December 2024, ESMA already plays a role in shaping compliance frameworks — but the new proposal would expand its authority to final decision-making power in disputes among asset managers and firms.
Toward a Unified Capital Market
ESMA chair Verena Ross confirmed in October that the Commission’s plan aims to reduce regulatory fragmentation and move toward a single capital markets union.
“This reform would help Europe compete globally while ensuring stability and investor protection,” Ross stated.
If implemented, this SEC-like oversight model could represent a major evolution in the EU’s approach to both traditional finance and digital assets, reinforcing confidence in European markets and creating a more attractive environment for startups and institutional investors alike.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.