The European Securities and Markets Authority said it will introduce a new Union Strategic Supervisory Priority, or USSP, from 2027 centered on digital innovation. The first areas of attention will be how regulated entities use artificial intelligence and tokenization. ESMA said the move is meant to make sure supervisors have the expertise and capacity needed to oversee emerging technologies. The digital innovation priority will run alongside the cyber and operational resilience USSP that takes effect in 2025. ESMA also said it will work with national competent authorities and keep the framework flexible enough to respond to future technological developments, including challenges linked to advanced models such as frontier AI. As the EU’s financial markets regulator, ESMA uses USSPs as a convergence tool for high-risk areas of strategic importance across the bloc, directing supervisory resources toward risks most relevant to investor protection, financial stability, and the orderly functioning of EU financial markets.
The European Securities and Markets Authority (ESMA) said it will launch a new Union Strategic Supervisory Priority (USSP) from 2027 focused on digital innovation. At the outset, the priority will center on the use of artificial intelligence and tokenization by regulated entities.
ESMA said the digital innovation USSP is intended to ensure that supervisors have the expertise and capacity required to oversee new technologies. It will run in parallel with the cyber and operational resilience USSP, which is set to take effect from 2025.
The regulator said it will work with national competent authorities and keep the approach flexible so it can respond to future technological developments, including challenges tied to advanced models such as frontier AI.
ESMA is the EU’s financial markets regulator. It uses USSPs as a convergence tool to address high-risk areas of strategic importance across the European Union and to direct supervisory resources toward the risks most critical to investor protection, financial stability, and the orderly functioning of EU financial markets.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
