The European Union is planning to expand the regulatory authority of the European Securities and Markets Authority (ESMA) to cover stock exchanges and cryptocurrency trading platforms. This move aims to bring key cross-border financial market infrastructures under centralized supervision, including stock exchanges, crypto-asset service providers, and post-trade operators.

The initiative is part of the EU's "Capital Markets Union" plan, which seeks to reduce regulatory fragmentation and lower cross-border transaction costs. Currently, each EU member state has its own independent regulatory body overseeing domestic stock exchanges and other market segments.

Luxembourg Finance Minister Gilles Roth stated, "We aim for regulatory convergence rather than establishing a costly and inefficient centralized model." Under the proposed framework, ESMA would gain direct supervisory powers similar to those of the U.S. Securities and Exchange Commission (SEC).

A draft proposal is expected to be released in December, including provisions granting ESMA binding authority to issue final rulings on disputes.