EU to Unveil Market Integration Plan: Centralizing ESMA Oversight of Crypto Exchanges and Clearing Infrastructures

According to a Financial Times briefing, the European Commission is drafting a plan to consolidate oversight of key financial market infrastructures, aiming to reduce regulatory fragmentation within the single market. The proposal would expand supervisory reach to cross-border critical entities, including crypto asset service providers, stock exchanges, crypto exchanges, and post-trade infrastructures, under the authority of ESMA.

Germany and France are coordinating to back the plan, signaling executive alignment at the national level. However, concerns from Luxembourg and Ireland warn that centralizing power may curb national competitiveness in their financial services sectors, underscoring the need to preserve market dynamics while pursuing harmonized oversight.

The Commission is expected to present a formal market integration plan in December, a milestone that could reshape Europe’s regulatory framework for both crypto and traditional markets. Stakeholders should assess implications for compliance costs, licensing, and cross-border operations as the policy evolves.