{"id":51424,"date":"2025-10-07T06:01:36","date_gmt":"2025-10-07T06:01:36","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=51424"},"modified":"2025-10-07T06:01:36","modified_gmt":"2025-10-07T06:01:36","slug":"eu-plans-transfer-of-crypto-stocks-oversight-power-to-address-market-fragmentation-esma-chair","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=51424","title":{"rendered":"EU Plans Transfer Of Crypto, Stocks Oversight Power To Address Market Fragmentation \u2013 ESMA Chair"},"content":{"rendered":"
\n

The European Union (EU) is reportedly planning to shift oversight power of key financial market areas, including crypto, from national authorities to a centralized supervisory authority to help boost the bloc\u2019s capital markets and harmonize regulation.<\/p>\n

EU Eyes Centralized Crypto Market Oversight<\/h2>\n

On Monday, Verena Ross, chair of the European Securities and Markets Authority (ESMA), affirmed that the regulation of stock exchanges, crypto companies, and clearing houses in the EU will likely be transferred to the bloc\u2019s market watchdog.<\/p>\n

Ross told<\/a> the Financial Times that the European Commission is preparing new rules that would shift the supervision of several areas of EU financial markets from national authorities to ESMA, to push for \u201ca capital market in Europe that is more integrated and globally competitive.\u201d<\/p>\n

Last month, the EU commissioner for financial services, Maria Lu\u00eds Albuquerque, shared they were \u201cconsidering a proposal to transfer supervisory powers to Esma for the most significant cross-border entities,\u201d including crypto companies.<\/p>\n

\u201cAll of this would imply changes to the governance and decision-making processes of Esma, and we have various models to consider based on other existing models of centralised supervision,\u201d said Albuquerque.<\/p>\n

The change aims to address the continued fragmentation<\/a> in markets to \u201ccreate more of a single market for capital in Europe,\u201d the ESMA chair stated, arguing that \u201cwhile we are doing a lot of work to try to make sure the implementation of MiCA is aligned, it clearly takes a lot of effort from us and the national supervisors to achieve that.\u201d<\/p>\n

\u201cIt also means that people had to build up specific new resources and expertise 27 times in different national supervisors, which could have been done more efficiently once at a European level,\u201d she added.<\/p>\n

Single Supervisor Proposal Faces Backlash<\/h2>\n

Notably, the EU first proposed making ESMA the main supervisory agency of Crypto Asset Service Providers (CASP) during the development of its Markets in Crypto-Assets Regulation (MiCA).<\/p>\n

The plan received backlash from smaller EU nations, such as Luxembourg, Ireland, and Malta, which criticized the watchdog\u2019s ability to oversee the fast-growing crypto market and feared it could undermine their flourishing financial sectors.<\/p>\n

As a result, the supervision of these markets was left in the hands of the 27 national authorities, which Ross considers has created inefficiencies<\/a>. She explained that the Paris-based authority has \u201ctried for quite some time with the capital markets union and other initiatives to build a more effective capital market,\u201d but \u201cthe reality has been that it is not easy to do given we have very different market structures.\u201d<\/p>\n

In July, ESMA raised concerns about Malta\u2019s process for approving pan-EU licenses for crypto companies, arguing that \u201csome risk areas were not adequately assessed during the authorisation process.\u201d<\/p>\n

As reported<\/a> by Bitcoinist, the bloc watchdog\u2019s Peer Review Committee (PRC) conducted a review of Malta\u2019s Financial Services Authority (MFSA) CASP authorization process, finding the national regulator only \u201cpartially met expectations,\u201d despite having adequate staffing and technical infrastructure.<\/p>\n

At the time, ESMA stressed that the concerns extended beyond Malta and urged all EU competent authorities to align their oversight mechanisms to ensure consistency under MiCA\u2019s regulatory regime.<\/p>\n

Last year, former European Central Bank President Mario Draghi identified transforming ESMA into a single common regulator for all the bloc\u2019s securities markets, similar to the US Securities and Exchange Commission (SEC), as a \u201ckey pillar\u201d to boost European capital markets.<\/p>\n

Since then, the European watchdog has been granted greater powers. The regulator will oversee new providers of consolidated tapes for equity and bond prices, and agencies that provide environmental, social, and governance ratings starting in 2026.<\/p>\n

However, Claude Marx, Director General of Luxembourg\u2019s financial watchdog, considers<\/a> that a single financial regulator would turn into a \u201cmonster.\u201d \u201cIt is a fantasy that the European Commission wants to push a single supervisor,\u201d Marx stated in June.<\/p>\n

\u201cThe European Commission has always stated they do not have an\u00a0id\u00e9e fixe<\/em>\u00a0to have a European SEC,\u201d he argued, adding that there remain several barriers to providing financial services across European borders.<\/p>\n

\"crypto,<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The European Union (EU) is reportedly planning to shift oversight power of key financial market areas, including crypto, from national authorities to a centralized supervisory authority to help boost the bloc\u2019s capital markets and harmonize regulation. EU Eyes Centralized Crypto Market Oversight On Monday, Verena Ross, chair of the European Securities and Markets Authority (ESMA), […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-51424","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/51424","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=51424"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/51424\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=51424"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=51424"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=51424"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}