TL;DR
- EU proposes transferring all crypto supervision to ESMA authority.
- The plan reduces national regulator roles in MiCA implementation.
- Industry warns centralized ESMA oversight creates legal uncertainty.
The European Commission is pushing for a major reshaping of crypto regulation in the European Union, proposing that the European Securities and Markets Authority (ESMA) take direct supervision of all crypto firms operating across the bloc.
The plan would replace MiCA’s current national regulator model, under which crypto companies must secure authorization in one EU member state before offering services elsewhere through “passporting.” National regulators have spent years preparing for this system, with full implementation scheduled to conclude next year.
Under the Commission’s draft, ESMA would gain authority to approve new entrants, though it could delegate some tasks back to national authorities. Overall, the proposal would dilute the role of national watchdogs and centralize oversight.
The market restructuring triggered by MiCA enforcement proved significant.
ESMA published guidance on January 17, 2025 requiring CASPs to delist non-MiCA compliant stablecoins by end of Q1. Major exchanges including Coinbase and https://t.co/grPyxGy9Sm delisted USDT in EU… pic.twitter.com/uvpFkxmzTc
— The Mint (@themint_assets) November 13, 2025
Industry groups caution that the shift could disrupt MiCA’s rollout and create legal uncertainty. Robert Kopitsch, secretary general of Blockchain for Europe, told Bloomberg that reopening MiCA now “would introduce legal uncertainty, risk delaying the authorization process, and divert attention and resources from consistent implementation.” He added that national regulators maintain closer daily contact with firms, a connection ESMA cannot easily replicate.
Other experts echoed concerns about timing. Andrew Whitworth, founder of Global Policy Ltd., said the markets could serve as a testbed for centralized oversight, but moving responsibility to ESMA immediately would be disruptive. He noted the authority would require a major expansion of resources to match the workload currently handled by national supervisors.
France has led the push for expanded ESMA powers
Last month, officials argued that giving ESMA direct control over major crypto firms would ensure uniform supervision and enforcement across the EU, reducing risks of loopholes and uneven oversight. ESMA Chair Verena Ross indicated that centralized oversight might ultimately be more efficient, highlighting the challenge of coordinating 27 national regulators separately.
The proposal is circulating in draft form ahead of an expected announcement next month and would require approval from both the European Parliament and the Council. The Commission and ESMA have declined to comment on the ongoing discussions.
