EU Proposes Financial ‘Super-Regulator’ To Unify Market Oversight

The European Commission on Thursday unveiled a plan to strengthen the European Securities and Markets Authority (ESMA) as a financial “super-regulator” for the 27-nation bloc.

Under the proposal, ESMA would supervise cryptocurrency markets, license market participants, and oversee key financial infrastructure, including stock exchanges and post-trading service providers. Large asset managers would also fall under its supervision. The move aims to integrate EU capital markets, allowing market participants to operate across member states and improve competitiveness against the U.S. and Asia. The proposals do not cover bank regulation. ESMA would receive an independent executive to carry out new responsibilities. The plan requires negotiation with the European Parliament and member states for approval.

Some countries, including Luxembourg and Germany, have expressed concerns about transferring control from national regulators, and the supervision of crypto assets has sparked debate over national versus EU-level oversight.