PANews reported on December 4th, citing Bloomberg, that the EU's executive body has announced plans to transfer more regulatory and enforcement powers to its market regulators, sparking debate over the transfer of power from national regulators to Brussels. The proposal, released Thursday, shows that the Paris-based European Securities and Markets Authority (ESMA) will have new powers over major clearing houses, central securities depositories, and trading venues. Less than a year ago, the EU introduced a national regulatory regime for cryptocurrency companies, and these companies, along with pan-European market operators, are now under the agency's jurisdiction. The centralization of most EU market regulatory powers requires the consent of the European Parliament and the Council of Member States, and some member states strongly oppose it.

The core of the proposal is to strengthen the powers and resources of the European Securities and Markets Authority (ESMA), establishing a board of five independent members with terms of no more than five years. The initial costs will be borne by the EU budget, with exchanges, central securities depositories, and crypto asset service providers covering ongoing expenses. To simplify European market operations, the European Commission will also amend legislation to limit member states from imposing additional requirements on securities issuers, streamline licensing procedures to improve cross-border central securities depository services, and integrate distributed ledger technology into the rulebook. Negotiations on this package will begin next January, when Cyprus will assume the rotating presidency of the Council of the European Union.