EU plan boosts ESMA powers over crypto and capital markets

The European Commission plans to expand ESMA oversight of MiCA crypto companies and trading venues, aiming to streamline EU markets and narrow the gap with the US.

The European Commission has proposed expanding the powers of the European Securities and Markets Authority (ESMA) over crypto and broader financial markets in a bid to narrow the competitive gap with the United States.

Published Thursday, the package would transfer “direct supervisory competences” for key pieces of market infrastructure, including crypto-asset service providers (CASPs), trading venues and central counterparties, to ESMA and strengthen its coordination role in the asset management sector.

The proposal still needs approval from the European Parliament and the Council, where it is under negotiation.

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