The European Commission is working on a new proposal that could significantly reshape how crypto and stock exchanges are regulated across the EU. According to early reports, the proposal—expected to be unveiled by December 2025—aims to give the European Securities and Markets Authority (ESMA) powers similar to those of the U.S. Securities and Exchange Commission (SEC).
This would mark a major shift in the EU’s financial regulatory framework. Currently, national regulators within EU member states oversee most exchange activity. However, if the draft is approved, ESMA could have direct supervisory powers over crypto exchanges and trading platforms across the union.
Implications for the Crypto Market in the EU
The move to give ESMA crypto oversight could be seen in two different lights. On one hand, centralizing supervision could boost market trust, reduce regulatory fragmentation, and attract institutional investors. A unified rulebook might also lower compliance costs for companies operating in multiple EU countries.
On the other hand, there are concerns this could slow innovation. Critics argue that giving a single agency too much authority might lead to rigid interpretations of the rules and limit the flexibility that fast-moving crypto projects need.
The EU has already taken steps to regulate digital assets through the Markets in Crypto-Assets Regulation (MiCA), which will come into force in 2024. Granting ESMA further powers may complement MiCA by providing enforcement strength across borders.
NEW: The European Commission is drafting a proposal to give ESMA SEC-like oversight over crypto and stock exchanges, with draft expected in December.
— Cointelegraph (@Cointelegraph) November 2, 2025
Could this make the EU more crypto-friendly or stifle innovation? pic.twitter.com/JiYNBz3pXv
A Path to Greater Market Stability or Potential Overreach?
Whether this will make the EU more crypto-friendly or stifle innovation depends on how the powers are implemented. A balanced approach could position the EU as a leader in responsible crypto innovation. But overly strict rules could drive projects to less regulated markets outside of Europe.
Industry players, policymakers, and crypto users will be watching closely as the draft takes shape in December. The final decision could shape the future of crypto in the region for years to come.