ESMA’s Expanded Powers: EU’s Next Big Shift in Crypto Regulation
A brief look at the EU’s proposal to give ESMA more authority over crypto licensing and supervision — and what it could mean for the market.
The European Commission is considering expanding the authority of the European Securities and Markets Authority (ESMA), giving it direct oversight of crypto-asset service providers and trading venues across the EU.
Supporters say a centralized framework could reduce regulatory fragmentation and create a more competitive capital market — especially compared to the United States. However, critics warn that giving ESMA both licensing and supervisory power could slow approval timelines and create new bottlenecks. Smaller or early-stage crypto firms may face more compliance pressure, potentially impacting innovation.
If approved, this move would shift the EU closer to a unified model similar to the U.S. SEC. The outcome will depend on ESMA’s capacity and collaboration with member states.
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EU considers centralizing crypto oversight under ESMA.
Disclaimer: Not financial advice.
