EU Proposes to Expand ESMA’s Powers over Crypto Assets: A New Regulatory Landscape

The European Union (EU) is preparing a major regulatory overhaul to enhance the authority of ESMA, a financial watchdog, over crypto assets. This proposal seeks to address shortcomings within the existing regulatory framework. It aims to consolidate supervision across crypto markets and harmonize oversight with the United States’ approach, which has led to increased clarity and consistency in the sector. 2025 marks a pivotal moment for European cryptocurrency regulation, as MiCA, an ambitious legal framework designed to oversee crypto assets, is being reviewed by the EU Commission for implementation and approval.