The European Commission has proposed expanding the regulatory authority of the European Securities and Markets Authority (ESMA) to include direct oversight of cryptocurrency and capital markets. This move aims to enhance competitiveness with the U.S. by centralizing regulatory control. The proposal would grant ESMA direct regulatory authority over key market infrastructures, such as crypto asset service providers, trading venues, and central counterparties. The proposal, which still requires approval from the European Parliament and Council, would align ESMA's role more closely with that of the U.S. Securities and Exchange Commission. This initiative follows previous calls from France, Austria, and Italy for ESMA to regulate major crypto firms.