Particle.news
Download on the App Store

EU Readies Plan to Give ESMA Direct Oversight of Markets and Crypto

The draft due in December seeks to curb regulatory arbitrage and fragmentation across member states.

Overview

  • The European Commission is finalizing a December Market Integration Package that would expand ESMA’s remit to supervise the most significant cross-border trading venues, clearing houses and central securities depositories, as well as key crypto platforms.
  • Under the reported plan, ESMA would be empowered to intervene in cross-border disputes and issue binding decisions, while national authorities would continue to oversee smaller domestic firms.
  • Support from ECB President Christine Lagarde, former ECB chief Mario Draghi and France’s central bank reflects a push to complete the Capital Markets Union and strengthen enforcement under MiCA, including on stablecoin risks.
  • Officials in Luxembourg and Dublin and industry groups such as Efama oppose centralization, warning of lost local control and higher compliance costs for firms.
  • ESMA chair Verena Ross points to the inefficiency of 27 separate supervisory build-outs for crypto, and Germany has signaled new openness to EU-level oversight, but the final scope remains politically contested ahead of publication.