The European crypto industry is voicing strong opposition to a proposal by the European Commission (EC) that would centralize EU crypto oversight under the European Securities and Markets Authority (ESMA). This shift, which aims to streamline regulations and enhance investor protection, is sparking debate over the future of innovation within Europe’s rapidly evolving digital asset landscape. [Include more details about ESMA’s history and role here] The draft proposal suggests that ESMA would assume significant supervisory authority over crypto firms across the EU, raising concerns from industry professionals who see this as a potentially stifling development. The concern stems from ESMA’s potential to overburden smaller businesses with excessive regulations and slow down innovation. [Elaborate on how regulation could impact startups]