The European Central Bank has endorsed an EU proposal to move oversight of systemically important crypto-asset service providers, major trading venues, and central counterparties from national regulators to the European Securities and Markets Authority, or ESMA. In its opinion on the European Commission’s market integration and supervision package, the ECB said centralized oversight would deliver consistent, high-quality supervision for cross-border market participants and cut the risk of regulatory blind spots across the bloc.
ECB says some crypto firms matter at the EU level
According to Reuters, the ECB argued that large crypto service providers and trading venues can become systemically relevant to the EU financial system. That, in the central bank’s view, justifies supervision at the European level rather than through separate national authorities. The ECB said direct ESMA supervision of certain market players is warranted because of risks tied to cross-border activity, adding that the current patchwork of national oversight is not sufficient for integrated markets.
The shift would expand ESMA’s role beyond its current tasks under the Markets in Crypto-Assets framework, or MiCA, where the Paris-based authority already drafts technical standards and coordinates supervisory work. Under the new setup, ESMA would take on a more direct position in monitoring major crypto entities.
Part of the EU’s broader market integration agenda
Brussels has tied the proposal to its long-running Capital Markets Union project, which seeks deeper integration and harmonization across EU financial markets. When the European Commission presented the package in February, it said a more integrated capital market requires more integrated supervision.
The reform is not limited to crypto. The proposal would also extend ESMA’s direct oversight to important clearing houses and trading venues in traditional finance. Including crypto platforms in the same restructuring effort shows that EU policymakers are treating digital-asset infrastructure as part of the wider market supervision framework.
Months of negotiations ahead and more resources needed
The legislative proposal is now with EU governments and the European Parliament, and negotiations are expected to last several months before any final law is adopted. The ECB also said ESMA must receive adequate staffing and financial resources if it is to handle a broader crypto mandate without overloading existing teams.
ESMA has previously warned that some crypto companies were giving misleading impressions about their status under MiCA and had urged national watchdogs to strengthen enforcement. If the new proposal becomes law, firms judged to be systemically important would answer to a single supervisor in Paris instead of dealing with 27 separate national regimes. For large exchanges and custodians operating across the EU, that could raise compliance costs while making supervisory expectations clearer.