The EU plans to launch a European version of the SEC to unify the regulation of stock and Crypto Assets exchanges.

The EU is drafting a major regulatory reform plan to allow the European Securities and Markets Authority (ESMA) to directly regulate stock and crypto asset exchanges, creating a central regulatory mechanism similar to the U.S. Securities and Exchange Commission (SEC). This plan is seen as an important step in the EU's push for a “Capital Market Union,” aimed at making it easier for Europe's startups to raise funds across borders and compete with the U.S. market.

The President of the European Central Bank first proposed the European version of the SEC concept.

European Central Bank ( ECB ) President Christine Lagarde publicly stated in 2023 at the European Banking Conference,

“Establishing a European regulatory body similar to the US SEC, such as empowering ESMA with more authority, may be a solution.”

She pointed out that such institutions should have direct regulatory authority to reduce the systemic risks that large cross-border financial institutions may pose.

Proposed expansion of powers for ESMA to directly regulate stock and crypto exchanges.

According to reports, the European Commission ( is preparing to announce a draft in December this year, planning to consolidate the regulatory powers of financial institutions such as stock and crypto exchanges under the responsibility of ESMA. Currently, EU regulation is still dispersed among national entities, resulting in high costs and cumbersome procedures for cross-border transactions. The draft is expected to cover:

Expand the scope of ESMA regulation to cover the stock market and crypto exchanges.

Incorporate Crypto Assets service providers )CASP( and other exchange infrastructure.

Allow ESMA to make binding decisions directly in asset management disputes.

French regulators warn of loopholes in the MiCA passporting system

The EU's current crypto regulatory framework “MiCA” will take effect in December 2024, allowing a company to operate in all 27 countries of Europe as long as it obtains a license in one member state, known as the “passporting system.”

However, in September, French financial regulators warned that some operators might deliberately choose to register in countries with looser regulations to engage in regulatory arbitrage and threatened to block passporting. France is also the third country, after Austria and Italy, to publicly call for large encryption operators to be directly supervised by the ESMA based in Paris.

) Note: The company deliberately chooses to register in countries with looser regulatory requirements, while operating throughout the EU using a passport system to avoid stricter regulations, which is regulatory arbitrage. (

ESMA Chairman Confirms Direction of Regulatory Integration

ESMA Chair Verena Ross confirmed in October that the EU Commission indeed plans to transfer more financial regulatory powers to ESMA. She pointed out that this move is aimed at addressing the ongoing fragmentation of the European Capital Market, progressing towards the goal of a “Unified Capital Market.”

)FinTechON｜Father of MiCA: Global digital finance knows no borders, but regulation is stuck at national borders?(

This article discusses the EU's plan to propose a European version of the SEC, aiming to unify the regulation of stock and Crypto Assets exchanges, first appeared on Chain News ABMedia.