European regulators need more powers to police crypto, watchdog says - Reuters

European securities regulators say their current toolkit is not sufficient to supervise crypto markets, according to Reuters. The watchdog's assessment points to a gap between how quickly crypto activity has grown and the authority supervisors have to oversee it.

For markets, the significance lies in what stricter oversight could change. Clearer powers for regulators may affect how crypto firms are licensed, how tokens are classified, and how disclosures and consumer protections are enforced. It could also influence where crypto businesses choose to base operations within Europe. The direction of travel is toward treating crypto more like mainstream finance, with similar rules and supervision.

What to watch: whether these recommendations translate into actual legislation, and on what timetable. Also worth monitoring is how the industry responds, and whether other jurisdictions follow Europe's lead. For now, this is a signal about regulatory intent rather than an immediate change in rules.