Overview
- The European Commission is drafting a December proposal to give ESMA direct supervision of major cross-border entities, as reported by multiple outlets citing the Market Integration package.
- Under the plan, ESMA would oversee leading trading venues, crypto platforms, clearing houses, and could issue binding decisions to resolve cross-border supervisory disputes.
- Backers such as ECB President Christine Lagarde, former ECB chief Mario Draghi, and officials in France, Italy, and Austria argue the shift would boost competitiveness versus the U.S.
- Pushback from Luxembourg, Ireland, and Malta, along with industry groups, warns of higher compliance costs, reduced national autonomy, and limited benefits for firms already working with local regulators.
- Drivers include MiCA’s passporting regime and ESMA’s July peer review finding Malta only partially met expectations, while timelines remain uncertain with a staged rollout projected by some reports as early as late 2026 if member states agree.