European Commission Proposes Enhanced ESMA Authority Over Crypto Markets and Trading Venues

The European Commission has unveiled a proposal to significantly strengthen the powers of the European Securities and Markets Authority (ESMA) within the digital asset sector. The initiative seeks to expand the regulator’s direct supervisory remit over entities operating under the forthcoming Markets in Crypto-Assets (MiCA) framework, as well as over key trading venues across the Union. This move is designed to create a more cohesive and streamlined regulatory environment for capital markets, aiming to enhance supervisory efficiency and market integrity. A core objective of the plan is to foster a more integrated single market for financial services, thereby improving the European Union’s competitive stance on the global stage, particularly in relation to other major jurisdictions.