Fragment to Force: EU’s Regulatory Overhaul Targets Deeper Capital Markets

The European Union is confronting a key structural weakness: its fragmented financial regulation.

In response, the Commission is crafting a proposal to bring stock and crypto exchanges under the direct supervision of a single body, the European Securities and Markets Authority (ESMA).

By replacing a maze of national agencies with a central “European SEC,” the bloc hopes to lower barriers to capital, bolster its startup ecosystem, and finally build a capital markets union that can compete on the global stage.