Core Viewpoint - The European Commission is proposing significant changes to transfer direct supervisory authority of stock exchanges, cryptocurrency firms, and clearing houses to the European Securities and Markets Authority (ESMA) to create a more unified capital market in the EU [1][4][8] Group 1: Proposed Changes - The proposed changes aim to resolve fragmentation in the EU's financial sector and enhance global competitiveness [3][7] - Regulation of various financial market sectors currently overseen by national authorities would shift to ESMA, including crypto asset service providers under the Markets in Crypto-Assets (MiCA) framework [4][5] Group 2: Current Challenges - The decentralization of supervision has led to inefficiencies and inconsistent application of MiCA, requiring significant resources to be built up in each member state [6] - ESMA has criticized the licensing process in Malta for pan-EU crypto companies, indicating that certain risk areas were not adequately assessed [6] Group 3: Opposition and Concerns - Fragmented supervision is argued to undermine consumer protections and investor confidence, with resistance from smaller EU countries like Luxembourg, Ireland, and Malta [7][8] - Concerns have been raised that centralizing powers at ESMA could create a regulatory "monster," potentially harming local financial sectors [7]