Crypto Sector Fears Chaos: Brussels Wants to Introduce a ‘European SEC’ #
A new plan from Brussels is putting the crypto sector on edge. The European Commission wants to appoint a single central supervisor responsible for licensing crypto companies across the entire European Union. While intended to simplify rules, the move is now causing unrest among companies and legal experts. They fear the new approach could lead to delays and uncertainty.
Major Concerns Over Crypto Supervision #
The Commission wants the European Securities and Markets Authority (ESMA) to gain significantly more power over crypto providers. This would give ESMA a role similar to that of the U.S. SEC. However, several experts warn that such centralization could slow down the sector.
According to Faustine Fleuret of the lending protocol Morpho, there is a risk that ESMA would both supervise and issue licenses. This could lead to a slower process, as a single supervisor would have to handle all applications from across the EU. Startups and smaller crypto companies, in particular, fear long waiting times and complicated procedures.
Elisenda Fabrega, legal director at tokenization platform Brickken, also emphasizes that ESMA lacks sufficient resources to handle this larger role. When one authority is responsible for all European licenses, it could lead to more cautious assessments and delays. This especially affects innovative companies that need speed to grow.
The proposal still needs to be approved by the European Parliament and member states. Yet it is already causing unrest, as different European countries have structured their supervision differently. A centralized approach could eliminate those differences, but the question is whether that can be done without major drawbacks.
What Brussels Exactly Wants to Change in the Crypto Market #
Currently, crypto companies fall under the MiCA regulations. National supervisors issue licenses, meaning stricter countries impose more requirements than others. According to the Commission, this fragmentation hampers growth and innovation in Europe. Some companies are even looking toward the United States, where a single central supervisor operates.
The new plan would give ESMA direct authority to authorize crypto companies that primarily deal with crypto assets. For companies operating in multiple countries, a new label would be introduced: the Pan-European Market Operator. This should provide a single uniform license for the entire EU.
ECB President Christine Lagarde supports the proposal. She believes strong central supervision is necessary to regulate large international crypto companies.
While the debate continues, it is clear that the proposal could have significant consequences. The crypto sector now waits to see whether Europe will opt for one strict supervisor or if member states will retain their own control.