The European Commission has proposed to expand ESMA's regulatory powers over cryptocurrencies and capital markets

According to Cointelegraph, the European Commission has proposed to expand the European Securities and Markets Authority (ESMA)'s regulatory powers over cryptocurrencies and financial markets, aiming to narrow the competitive gap with the United States.

The proposal would transfer direct regulatory authority over key market infrastructures such as crypto asset service providers (CASPs), trading venues, and central counterparties to ESMA. The proposal still requires approval from the European Parliament and Council. If passed, ESMA's role in regulating EU capital markets will be more similar to the centralized framework of the U.S. Securities and Exchange Commission. Previously, France, Austria, and Italy have called for ESMA to take over the regulation of major cryptocurrency companies.