The European Commission is considering a proposal to grant the European Securities and Markets Authority (ESMA) direct supervisory authority over stock exchanges, cryptocurrency firms, and clearing houses. This move aims to address fragmentation within the EU's financial sector and foster a more unified capital market, according to ESMA chair Verena Ross. Currently, the regulation of crypto asset service providers falls under national authorities as per the MiCA framework. The proposed shift to ESMA oversight has raised concerns among smaller EU countries, including Luxembourg, Ireland, and Malta, regarding potential centralization of regulatory power.