ESMA will implement a new Union Strategic Supervisory Priority (USSP) on digital innovation starting on January 1, 2027. This initiative aims to enhance supervisory capacity regarding the use of new technologies, particularly artificial intelligence and tokenisation.
The USSP on digital innovation will run concurrently with the existing USSP on cyber and operational resilience, which has been active since 2025. ESMA will collaborate with National Competent Authorities to ensure supervisors have the expertise to oversee these technologies.
The new priority applies to crypto and fintech firms, specifically focusing on their use of AI and tokenisation technologies. Compliance teams within these firms should prepare for increased scrutiny regarding their current capabilities.
ESMA has not specified any transitional periods or exemptions related to this new priority. The authority emphasizes the need for firms to align with upcoming supervisory expectations as they develop.