Europe is entering another defining moment in its approach to digital-asset regulation, and the discussion is now centered on centralized crypto oversight. The European Commission is considering a major change that could reshape how every crypto firm in the region is supervised. Instead of relying on national regulators under MiCA’s original structure, the proposal would shift large parts of that responsibility to the European Securities and Markets Authority. The idea is still being debated, but its direction has already sparked concerns across the industry. With MiCA’s rollout still underway, firms and policymakers are trying to understand what this potential shift could mean in practice.

EU’s Proposal to Shift Authority to ESMA

According to draft documents cited by Bloomberg, the European Commission wants ESMA to become the direct supervisor of all crypto companies operating in the European Union. This would override MiCA’s national-authorization model, where firms obtain approval from one member state and then “passport” their license across the bloc. Under the new proposal, ESMA would take charge of approving new market entrants and overseeing compliance standards.

The Commission’s draft mentions that ESMA could delegate certain responsibilities back to national regulators, but the wider structure would place significantly more authority in the hands of the EU-level supervisor. Because the plan is still in discussion, final details remain uncertain, and officials have declined to comment publicly.

Any change of this scale needs approval from both the European Parliament and the Council, meaning negotiations could take time. National regulators have spent years preparing for MiCA’s implementation window, set to close next year, which is also why the timing of this proposal is drawing scrutiny.

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Industry Concerns and Member-State Reactions

Industry groups warn that moving to centralized crypto oversight at this stage could disrupt MiCA’s rollout and introduce legal uncertainty. Robert Kopitsch of Blockchain for Europe told Bloomberg that revisiting MiCA now could delay authorization timelines and shift attention away from consistent implementation. He also argued that national supervisors maintain closer day-to-day contact with firms, something ESMA may find difficult to replicate without a significant increase in resources.

Other policy experts echoed similar points. Andrew Whitworth of Global Policy Ltd. noted that while crypto markets could, in theory, support a more centralized supervisory model, shifting responsibility before MiCA’s first years of practical experience could create unnecessary friction.

France has been one of the strongest supporters of expanding ESMA’s powers. Last month, Bank of France Governor François Villeroy de Galhau said that centralized supervision would help prevent regulatory loopholes created by the passporting system. ESMA Chair Verena Ross has also previously suggested that a single point of oversight could be more efficient, especially when dealing with cross-border activity.

Even so, not all member states are aligned. Some regulators prefer to maintain authority within their own jurisdictions, especially after years of preparation for MiCA. ESMA itself has flagged concerns about national approaches, including issues identified earlier this year in Malta’s crypto licensing process after a peer review.

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Looking Ahead

The path toward centralized crypto oversight is still at a discussion stage, and the final direction will depend on political negotiations and industry feedback. What is clear for now is that the proposal represents a significant shift from the original MiCA framework. As the EU weighs its next move, firms across the region will be watching closely to understand how future rules may affect authorization, supervision, and long-term stability. The coming months will likely determine whether the bloc continues with its national-supervisor model or moves ahead with a fuller ESMA-led structure.