🇪🇺 European Commission’s Proposal to Expand ESMA Sparks Heated Crypto Regulation Debate
The European Commission has unveiled a proposal that could significantly reshape crypto oversight across the EU — by expanding the powers of the European Securities and Markets Authority (ESMA).
Under this plan, ESMA would gain direct supervisory authority over major crypto-asset service providers (CASPs), aiming to strengthen cross-border regulation and enhance investor protection. But not everyone is cheering.
🧩 What’s Changing?
More centralized oversight: ESMA could directly monitor large exchanges, stablecoin issuers, and wallet providers.
Tighter compliance: Firms would face stricter reporting standards under MiCA (Markets in Crypto-Assets Regulation).
EU-wide uniformity: The goal is to reduce regulatory gaps between member states.
⚖️ Why It’s Sparking Debate
Critics argue the move could stifle innovation and add bureaucratic hurdles for startups. Others see it as a much-needed step toward building trust in Europe’s crypto markets."