The European Commission is considering a proposal to place stock and cryptocurrency exchanges under centralized oversight to enhance the competitiveness of the EU's capital markets compared to the US. This initiative would extend the European Securities and Markets Authority's (ESMA) authority to include stock and crypto exchanges, as well as crypto asset service providers. Currently, the EU's regulatory framework is fragmented, with multiple national agencies increasing cross-border trading costs and stifling startup growth. A unified supervisory body, similar to the US SEC, could be pivotal for the EU's capital markets union, as suggested by ECB President Christine Lagarde. The draft proposal is expected in December, allowing ESMA to resolve disputes among asset managers with binding decisions. This move aims to address regulatory inconsistencies, particularly concerning crypto service providers. France, Austria, and Italy have already advocated for ESMA to oversee major crypto firms, highlighting the need for a cohesive regulatory approach across the 27-nation bloc. Read more AI-generated news on: https://app.chaingpt.org/news

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