Today, with crypto, the European Union is looking to expand surveillance on digital asset companies. The Crypto Funds saw a strong influx amid concerns over US government closures. An executive at MulticoinCapital said that genius acts can ultimately make money in traditional banks.
EU Eyes Crypto Director Ends fragmented director based on ESMA
European Union market regulators are preparing to expand their authority to cover cryptocurrency exchanges and other operators, officials say they will better coordinate surveillance with Bloc’s newly implemented markets in the Crypto-Assets (MICA) framework.
In an interview with the Financial Times, Verena Ross, chairman of the European Securities and Markets Agency (ESMA), confirmed that the Commission is developing a plan to shift from national regulators in several financial sectors to ESMA, including Crypto.
Ross said the reforms will help build a “more integrated and globally competitive” EU financial landscape. The proposal aims to address “continuous fragmentation in the market” and to bring it closer to Europe’s unified capital markets, she said.
Under the current MICA regime, licenses for crypto asset service providers are issued by national authorities rather than central EU agencies.
So far, small member states have led the deployment. Lithuania granted the first license to discount Robinhood Europe earlier this year, but Malta has approved major exchanges including OKX and crypto.com. In Luxembourg, BitStamp and Coinbase also have MICA licenses.
Ross argued that delegating oversight to individual countries creates inefficiency and forces each national authority to build its own expertise and surveillance systems. The ESMA also raises concerns about inconsistent licensing standards, such as a July review that criticized elements of Malta’s authorization process.
Crypto Funds Smash Records has a $5.95 billion influx amid concerns about closure
Cryptocurrency Investment Products recorded the highest influx of all time last week. This is because the US government closures have encouraged rallies in the spot crypto market.
Global Crypto Exchange Transaction Products (ETPS) recorded an influx of $5.95 billion in the week ending Friday – the biggest ever – Coinshare reported on Monday.
“We believe this is due to a delayed response to interest rate cuts by the FOMC (Federal Open Market Committee) and concerns about the stability of the US government after the closure,” said Coinshares’ research director.
The record-breaking influx comes amidst the overall bullish trend in the crypto market, with Bitcoin (BTC) registered a new historic high of over $125,000 on Saturday.
With inflows reaching $5.95 billion, Crypto ETPS surpassed its previous $4.4 billion record from mid-July by 35%.
Unlike previous record influxes that were distributed almost equally between Bitcoin and Ether (ETH), latest profits are heavily dominated by BTC, with Bitcoin funds attracting a record-breaking $3.6 billion.
“Even though the highest ever price was concluded this week, investors did not choose to buy short investment products,” Coinshares Butterfill said.
Ether ETPS saw an inflow total of $1.48 billion, pushing the annual inflow to another $13.7 billion record.
According to Coinshares, Solana (Sol) ETP inflow ranked third at $706.5 million, with XRP (XRP) adding $219.4 million.
Genius acts can mark the end of a bank rift: multicoin
According to the co-founder of Multicoin Capital, the Stablecoin-centric genius law enacted in July causes the departure of deposits from traditional bank accounts to high-yield stubcoins.
“The Genius Bill is the beginning of the end of the bank’s ability to prey on retail depositors with minimal interest,” Tusha Jain, co-founder and managing partner of Multicoin Capital, posted on X on Saturday.
“We hope that after the genius, big tech giants with mega distribution (meta, Google, Apple, etc.) will start to compete with banks for retail deposits,” Jaina added, claiming that they will offer better stubcoin yields by offering a better user experience for immediate settlements and 24/7 payments than traditional bankers.
He noted that the banking group attempted to “protect profits” in mid-August by calling on regulators to close the so-called loopholes that could allow stubcoin issuers to pay interest or profits on stubcoin through affiliate marketing.
