Overview
- The European Central Bank issued an opinion supporting an EU proposal to centralize supervision of systemically important crypto companies and other key market players at the European Securities and Markets Authority.
- The plan would move oversight of large cross-border crypto asset service providers, major trading venues, and central counterparties to ESMA, replacing 27 national regimes with a single supervisor that could bring clearer rules but higher compliance costs for big firms.
- The legislative text now goes to EU governments and the European Parliament for negotiations that are expected to run for months before any law is finalized, and the ECB stressed its view does not bind lawmakers.
- The ECB said ESMA must receive more staff and funding to take on an expanded role, and it suggested a gradual transfer of duties to avoid gaps as responsibilities shift from national watchdogs.
- Smaller member states including Luxembourg, Ireland, and Malta raised concerns about losing supervisory roles and questioned ESMA’s capacity, while industry groups warned that reopening the EU’s crypto rulebook known as MiCA could create legal uncertainty and slow licensing.