EU Plans Comprehensive Reform for Direct Oversight of Financial Markets

According to PANews, the European Commission is considering a comprehensive reform to grant the European Securities and Markets Authority (ESMA) direct regulatory authority over stock exchanges, cryptocurrency companies, and clearinghouses. ESMA Chair Verena Ross stated that this initiative aims to address the longstanding fragmentation in EU financial markets and create a more integrated and globally competitive capital market. Currently, the regulation of crypto asset service providers (CASPs) is primarily executed by individual member states under the MiCA framework. However, ESMA argues that this decentralized approach is inefficient and undermines consumer protection. The proposal has faced opposition from smaller countries like Luxembourg and Malta, which warn that centralizing power could harm their local financial industries.