ESMA Sets Sights on Operational Resilience in 2027 Crypto Oversight

The European Securities and Markets Authority (ESMA) has outlined its priorities for supervising crypto firms in 2027 under the Markets in Crypto-Assets Regulation (MiCA). ESMA's work program, published September 28, sets operational resilience, outsourcing, and supervisory coordination as central to its oversight. This framework is crucial for U.S. crypto companies operating in Europe, as it governs authorization and ongoing supervision for firms serving the European Union's market.

ESMA will coordinate national regulators on key areas such as operational resilience, outsourcing risks, liquidity, reverse solicitation, and asset classification. The regulator also plans to promote common risk indicators and supervisory dashboards while standardizing periodic reports submitted by crypto-asset service providers (CASP) to national authorities.

ESMA Chair Verena Ross emphasized that the regulator's MiCA work has shifted from rulemaking towards supervision and convergence, aiming to support innovation while providing clarity for firms, investor safeguards, and confidence in financial markets. ESMA is also advancing MIDAS, its centralized system for monitoring potential market abuse in crypto markets, with the first phase expected to be fully operational in 2027.