EU Plans SEC-Like Financial Regulator to Oversee Stock and Crypto Markets
According to the Financial Times, the European Commission is preparing to introduce sweeping reforms that would expand central oversight of Europe’s key financial infrastructures, including stock markets, clearing houses, and crypto exchanges.
The initiative aims to reduce market fragmentation across member states and enhance the EU’s global competitiveness.
ESMA to Gain Expanded Supervisory Powers
Under the proposed framework, the European Securities and Markets Authority (ESMA) would become the single supervisory body overseeing major cross-border financial entities. This includes crypto asset service providers, centralized exchanges, and post-trade institutions, giving ESMA powers comparable to the U.S. Securities and Exchange Commission (SEC).
The move is seen as a major step toward completing the Capital Markets Union (CMU) — an effort to unify Europe’s capital markets and ensure smoother cross-border investment flows.
Strengthening the EU’s Financial Independence
Brussels officials argue that stronger, centralized supervision will not only simplify compliance but also protect the EU’s financial stability in a rapidly evolving digital landscape.
The European Commission’s proposal underscores the growing recognition of crypto assets and tokenized finance as integral components of modern capital markets.
Analysts expect the plan to face debate among member states wary of losing national regulatory control, but its adoption could mark a turning point in Europe’s pursuit of a cohesive, innovation-driven financial ecosystem.
