The European Commission has announced plans to create a single European regulator for financial markets, including stocks and cryptocurrencies, similar to the SEC in the USA. The relevant legislative package is expected to be presented in December 2025.
This is reported by Business • Media
Plans for Centralizing Financial Oversight in the EU
The European Commission is developing a “market integration package” that will serve as the foundation for establishing a new regulator to oversee the EU’s financial markets. This initiative aims to eliminate market fragmentation, reduce costs for cross-border transactions, and stimulate the development of startups. Currently, oversight is conducted by dozens of national authorities, complicating the establishment of a level playing field for market participants.
The importance of a unified regulatory infrastructure has been repeatedly emphasized by ECB President Christine Lagarde and former Italian Prime Minister Mario Draghi. In their statements, they highlighted the need to complete the formation of a capital markets union, which would enable the EU to compete with the USA in the global financial market.
As part of the reform, control over stock and cryptocurrency exchanges, as well as clearing and depository infrastructures, is planned to be transferred to the European Securities and Markets Authority (ESMA). The new oversight system is expected to enhance the EU’s competitiveness, ensure uniform standards, and minimize risks to financial stability.
Discussions and Controversies Among Member States
Preliminary proposals foresee granting ESMA the authority to oversee stock exchanges, crypto services, central counterparties (CCPs), and central securities depositories (CSDs). Additionally, ESMA will be able to resolve disputes between major management companies and national regulators.
“We are still exploring the potential for EU-level oversight regarding key infrastructures — such as clearinghouses, securities depositories, and trading venues, as well as large cross-border companies, including asset managers,” stated the European Commission.
The issue of centralization has elicited varying approaches among EU countries. France, Italy, and Germany generally support this idea, while Luxembourg and Ireland oppose it, fearing a loss of influence over their own financial centers. Luxembourg’s Finance Minister Gilles Roth emphasized that the country advocates for the harmonization of supervisory practices but not for the creation of a large and inefficient centralized control model.
European exchanges also express caution regarding the potential increase in compliance costs with future regulatory requirements. EFAMA representative Marin Capel noted that the expansion of ESMA’s powers could lead to higher fees for the industry.
In turn, Germany, which previously opposed centralization, is now showing a willingness to compromise and is discussing with France the possibility of partially transferring powers to ESMA, primarily in the area of asset management. However, the issue of direct oversight over cryptocurrency exchanges remains open.
Earlier, ESMA Executive Director Natasha Cazenave warned that the strengthening of the link between the crypto market and traditional finance could create additional risks for the stability of the entire financial system. The Bank of France has also called for oversight of large crypto companies to be transferred to ESMA to unify regulation within the EU.