The European Commission has adopted a comprehensive package designed to remove barriers and unlock the potential of the EU single market for financial services. The measures form a core pillar of the Savings and Investments Union (SIU) strategy, aiming to build a more integrated and competitive financial system that offers citizens better wealth-building options and supports businesses in accessing funding.

A rewritten rulebook for trading funds and crypto

The Market Integration Package overhauls key parts of the rulebook for trading, post-trading, funds, crypto assets, and supervision. For banks, asset managers, and market infrastructures — particularly in cross-border hubs such as Luxembourg — the reform introduces new supervisory layers, new passporting mechanics, and growing pressure on legacy business models.

The European Securities and Markets Authority (ESMA) would transition from a primarily convergence-focused authority to a direct supervisor of core EU market infrastructure. Significant trading venues, CCPs, CSDs, and new Pan-European Market Operators would fall under ESMA oversight, together with all Crypto Asset Service Providers (CASPs).

ESMA as the single supervisor for CASPs

The Markets in Crypto-Assets Regulation (MiCA) is amended to ensure that all CASPs are authorised and supervised directly by ESMA. There is no division of powers — ESMA becomes the sole supervisor for these entities and assumes responsibility for market surveillance and enforcement of market-abuse rules for crypto assets admitted to trading on regulated platforms.

Banks, investment firms, electronic money institutions, and fund managers that provide crypto asset services under existing licences remain under their national supervisors. However, if crypto assets become their main activity by turnover, supervision of the entire entity shifts to ESMA (with the exception of banks). For crypto platforms and brokers, this creates a single EU-level rule enforcer while reducing opportunities to exploit differences across national regimes.

National roles remain but the centre of gravity moves to Paris

National authorities will continue to oversee local market surveillance and non-significant entities, but responsibility for systemically important market infrastructure shifts to Paris. ESMA’s strengthened role will make EU oversight more comparable to the centralized model of the US Securities and Exchange Commission.

ESMA will also conduct annual joint reviews of large asset management groups with national regulators, identifying supervisory divergence. While ESMA will not directly supervise funds or managers, it gains stronger tools to enforce convergence across the EU.

Simplification remains a key priority

Several directives will be converted into regulations, reducing national divergences. At the same time, unnecessary requirements and gold-plating will be eliminated to ease compliance burdens and support business activity.

Next steps

The proposals now enter negotiations with the European Parliament and the Council. The Commission emphasises that the reforms form an interconnected package and warns against fragmented adoption. It has pledged close cooperation with policymakers, Member States, and stakeholders to ensure swift and effective implementation — with the ultimate goal of delivering a truly integrated European financial market.

Sources:

https://finance.ec.europa.eu/publications/market-integration-package_en

https://delano.lu/article/eu-market-integration-package-10-key-changes

https://fintech.global/2025/12/04/eu-acts-to-remove-barriers-to-capital-markets-integration/

https://www.tradingview.com/news/cointelegraph:a798ac127094b:0-eu-plan-boosts-esma-powers-over-crypto-and-capital-markets/

https://www.bloomberg.com/news/articles/2025-12-04/europe-pitches-centralized-markets-watchdog-to-power-prosperity