The European Commission has proposed expanding the European Securities and Markets Authority's (ESMA) powers to include direct oversight of cryptocurrencies and capital markets. This move, expected to be detailed in a draft plan in December, aims to create a centralized regulatory framework similar to the U.S. SEC. The proposal has sparked debate, with critics warning it could stifle innovation and slow decision-making, while supporters argue it could enhance regulatory maturity. Under the current MiCA regulations, effective from December 2024, crypto service providers can transfer licenses across EU member states. However, industry leaders express concern that centralizing authority within ESMA might burden innovation, particularly in the crypto and fintech sectors. Faustine Fleuret of Morpho advocates for strengthening national regulators instead, while Dia Markova of Fireblocks supports centralized standards to address licensing and cybersecurity issues. ECB President Christine Lagarde has endorsed the idea of a single regulatory body akin to the SEC.