TechFlow news, December 4 — According to Cointelegraph, the European Commission has proposed expanding the European Securities and Markets Authority's (ESMA) regulatory powers over cryptocurrency and financial markets, aiming to close the competitive gap with the United States. The proposal would transfer "direct supervisory authority" over key market infrastructures—including crypto-asset service providers (CASPs), trading venues, and central counterparties—to ESMA.
The proposal still requires approval from the European Parliament and the Council. If adopted, ESMA's role in regulating EU capital markets would become more akin to the centralized framework of the U.S. Securities and Exchange Commission. Previously, France, Austria, and Italy had called for ESMA to take over supervision of major cryptocurrency firms.
