EU Proposes SEC-Style Single Regulator for Crypto and Stock Exchanges

1 month ago7 min read1 comments

The European Commission is drafting a landmark proposal to create a single, powerful regulator for both crypto assets and traditional stock exchanges, aiming to unify oversight across the 27-nation bloc. The initiative, expected in December, seeks to address the regulatory challenges posed by the borderless nature of digital finance, where a single decentralized finance (DeFi) protocol can impact investors across multiple member states simultaneously.This move would centralize authority currently fragmented among national watchdogs, creating a super-regulator with a mandate covering everything from non-fungible tokens (NFTs) to large-scale tokenized securities. Proponents argue this 'MiCA 2.0' evolution is essential for consistent investor protection, market stability, and providing legal clarity for innovators operating across Europe. However, critics within the crypto community warn this represents a dangerous centralization of power that could stifle the permissionless innovation at the heart of blockchain technology. The proposal sets the stage for intense political negotiations as member states weigh surrendering national regulatory sovereignty and industry players lobby to influence the final framework, potentially establishing a global benchmark for digital asset regulation.

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#European Commission

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#MiCA

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