The European Commission is preparing a U.S.-inspired regulatory shift to unify supervision over exchanges, stock markets, and clearing houses.
The European Union is moving toward a unified framework for regulating digital assets, with a plan that could reshape the continent’s financial oversight landscape. According to the Financial Times, the European Commission intends to present a proposal in December to establish a centralized supervisory authority modeled after the U.S. Securities and Exchange Commission (SEC).
The plan foresees the creation of a single supervisory entity with jurisdiction over cryptocurrency exchanges, traditional stock exchanges, and clearing houses (entities that ensure transactions between buyers and sellers are executed correctly and reduce counterparty risk). The stated goal is to create a true “capital markets union,” facilitating the growth of fintech startups and crypto companies, which currently must navigate a complex network of national and regional regulators to operate across borders.
One option under consideration is to expand the powers of the European Securities and Markets Authority (ESMA) to include direct supervision of systemically important cross-border financial entities. This category would cover large exchanges, stock trading platforms, and post-trade infrastructures.
However, the proposal has proven “controversial,” as noted by the Financial Times, with resistance from some member states concerned about losing regulatory sovereignty over their financial hubs.
Support from the ECB
The plan enjoys backing from figures such as Christine Lagarde, President of the European Central Bank, and her predecessor Mario Draghi. Lagarde has also recently supported the German proposal to create a unified European stock exchange.
The European Commission confirmed to the Financial Times that it is “still exploring the potential of EU level supervision in relation to some critical infrastructures, such as central counterparties, central securities depositories and trading venues, as well as in relation to big cross-border entities such as asset managers.”
Resistance and concerns
Not all member states welcome such a regulatory transformation. Luxembourg and Dublin, according to reports, have expressed strong skepticism about a single supervisor, fearing that the EU may not act in the interests of smaller nations hosting major financial centers.
The proposal is part of a broader effort to strengthen regulation. In recent months, the European Commission and EU finance ministers have taken several steps toward centralizing oversight of key areas of the crypto market, from stablecoins to exchanges. The Commission is also preparing further proposals on the tokenization of real-world assets (RWAs).
Next steps
If the Commission formally presents the regulatory package in December 2025, the ordinary legislative process will begin, involving the European Parliament and the Council of the EU. The process will include amendments and negotiations among the three institutions, with timelines that could extend into 2026.
