The European Commission’s proposal to expand ESMA’s powers raises concerns about centralizing the bloc’s licensing regime, potentially slowing down crypto and fintech startup development. The proposal includes direct supervision of key market infrastructure by ESMA, requiring approval from the European Parliament and Council for implementation.

The move to centralize oversight under ESMA aims to harmonize national supervisory practices but may hinder industry growth. Concerns about effectiveness include resource allocation, operational capacity, and cooperation channels with member states. The broader package seeks to boost wealth creation by making EU capital markets more competitive with the US.

The US stock market holds $62 trillion, or 48% of the global equity market, while the EU stock market is valued at $11 trillion, representing 9% of the global share. The proposal aims to increase EU market competitiveness and wealth creation for citizens.

Read more at Cointelegraph: ‘European SEC’ Proposal Licensing Concerns, Institutional Ambitions