The EU plans to launch capital market integration reforms in 2027, and cryptocurrency companies will also be regulated by ESMA

The European Union's Commissioner for Financial Services, Mairead McGuinness, stated on Tuesday that the EU hopes to begin implementing its capital markets integration package of reforms by 2027, providing guidance for the first time on the timeline for this reform. "We should push for discussions and approvals of this package as soon as possible; ideally, it would be very desirable to start implementation in 2027."

Last week, the European Commission announced plans to grant its market regulator, the European Securities and Markets Authority (ESMA), greater supervisory and enforcement powers as part of a series of measures to integrate fragmented capital markets.

The proposal still requires approval from the European Parliament and the EU Council, with some member states strongly opposing it. Centralizing regulatory power will bring important clearing houses, central securities depositories, and trading platforms under ESMA's jurisdiction, and cryptocurrency companies will also be subject to ESMA regulation. The EU has also committed to a comprehensive review of banking regulatory rules by the end of next year, and the European Central Bank will announce proposals for simplifying bank regulation on Thursday, which will be included in the EU Commission's overall reform efforts.