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EU Set to Propose ESMA Takeover of Cross-Border Market Supervision in December

The push targets fragmented enforcement that policymakers say holds back Europe’s capital markets.

Overview

  • The European Commission plans a December Market Integration Package that would grant ESMA direct oversight of major cross-border exchanges, crypto platforms and clearing houses.
  • The contemplated regime would empower ESMA to issue binding decisions, intervene in cross-border disputes and supervise systemically important firms and infrastructures.
  • Officials frame the step as advancing the Capital Markets Union by reducing market fragmentation and aligning Europe more closely with a single-market model.
  • Backers include ECB president Christine Lagarde and the Banque de France, with Austria and Italy supporting stronger EU-level supervision for large crypto platforms.
  • Opposition from Luxembourg, Ireland and industry groups cites loss of national control and higher costs, while the Commission says it is still weighing alternative supervision models.