EU member states have rejected plans to put every digital-asset firm under direct ESMA supervision, drawing a line that leaves most of them under their familiar national watchdogs.

This is a substantial retreat from the European Commission’s original proposal, presented in December 2025, which implied that ESMA would supervise every authorised crypto provider.

The Council instead wants national regulators to remain responsible for most firms, reserving direct EU oversight for businesses whose size and cross-border reach justify it. Where that line will be drawn remains unclear because the relevant thresholds have not yet been published.

One Licence for Multiple Trading Venues

The same significance test would apply to other parts of…