The European Commission proposes to expand the powers of the European Securities and Markets Authority (ESMA), raising licensing concerns.

According to Jinse Finance, on Thursday, the European Commission released a package of plans proposing “direct supervision” of key market infrastructures, including Crypto Asset Service Providers (CASPs), trading venues, and European Securities and Markets Authority (ESMA) central counterparties.

If the proposal is approved, the role of the European Securities and Markets Authority (ESMA) in regulating EU capital markets will become closer to the centralized framework of the U.S. Securities and Exchange Commission, a concept initially proposed by European Central Bank (ECB) President Christine Lagarde in 2023.