- European Commission proposes SEC-style financial oversight in EU markets.
- Changes target securitisation and capital requirements.
- Regulatory shift may impact crypto and DeFi in Europe.
On June 17, 2025, the European Commission announced major proposals to amend financial regulations for EU markets, inching towards a centralized, SEC-style regulatory framework.
This shift could impact asset managers in crypto, altering regulatory landscapes and increasing compliance costs for tokenized securities, potentially influencing market dynamics significantly.
The European Commission has issued major proposals on June 17, 2025, aiming for a centralized regulatory framework similar to the SEC’s in the United States. This move is seen as a significant shift in the EU’s financial market regulations.
The proposals primarily focus on amending regulations around securitisation and capital requirements. The plan involves the European Commission with leadership from the Joint Committee of European Supervisory Authorities, including ESMA, EBA, and EIOPA.
These regulatory changes are set to impact all instruments subject to securities and capital rules, affecting asset managers and fintech companies dealing with crypto assets. Potential adjustments could reshape industry practices and oversight in the European financial landscape.
While no new funding allocations or specific crypto assets were referenced, the shift could influence institutional participation and compliance requirements for companies involved in token issuance and management, potentially altering the market dynamics significantly.
The European Union’s historical approaches, like MiCA and DORA, underscore previous efforts towards regulatory centralization. These frameworks have previously caused short-term uncertainty across various digital finance sectors. The new proposal likely follows a similar trajectory in terms of industry impact.
Experts anticipate that changes may ultimately affect European stablecoins and DeFi protocols more directly. Although explicit regulatory targets are absent, institutional behaviors and tech adaptations will need to align with new compliance expectations in Europe’s transformed regulatory environment.
“The purpose of the review is to remove undue issuance and investment barriers in the EU securitisation market.”
