What happened?
France urged the EU to give the European Securities and Markets Authority (ESMA) direct oversight over major crypto firms operating across the bloc. The Bank of France warned that current passporting and multi-issuance of stablecoins leave loopholes and uneven supervision. The European Commission is weighing changes to shift supervision to ESMA and ESMA has already flagged gaps in some national licensing, like in Malta.
Who does this affect?
Major crypto firms and stablecoin issuers such as Circle and Paxos that rely on multi-issuance and passporting across EU states would be directly affected. National regulators and smaller member states could see their licensing powers reduced or come under tighter scrutiny. Investors, exchanges and everyday users of stablecoins in the EU may face new rules, limits or changes in which tokens are easily available.
Why does this matter?
Centralizing supervision under ESMA could reduce regulatory arbitrage and make the EU crypto market more stable and predictable. At the same time, tighter rules would likely raise compliance costs and force issuers to reorganize, which could temporarily disrupt liquidity and access to euro-pegged stablecoins. Those shifts could change market flows, drive consolidation among compliant firms, and affect trading activity and pricing across European crypto markets.