Europe is changing terrain. From 2027, ESMA will make AI and tokenization a supervisory priority. There is no question, at this stage, of banning these technologies. Regulators especially want to know where they are used, with what data and what effects for customers. After MiCA, Brussels is therefore moving to another stage: looking at what is really happening in financial companies.
In brief
- The EU will strengthen its oversight of AI and tokenization from 2027 Europe is changing terrain. From 2027, ESMA will make AI and tokenization a supervisory priority. There is no question, at this stage, of banning these technologies. Regulators especially want to know where they are used, with what data and what effects for customers. After MiCA, Brussels is therefore moving to another stage: looking at what is really happening in financial companies. After MiCA, Europe wants to look at what is happening in companies MiCA had set the rules of the game for crypto-assets. The next step is more concrete. ESMA wants to understand how digital technologies are used in financial activities that affect customers. The new priority is called “Innovation with Investor Safeguards.” It will begin in 2027. The authorities will first map current and planned uses, then select certain companies to carry out initial checks. The objective is to see if the control systems really follow the transformations in the sector. ESMA summarizes its objective as follows: “exploit rapid technological developments while guaranteeing investor protection”. Change is important. A technology can be authorized on paper and, once deployed, pose problems of transparency, data quality or customer protection. It is precisely this terrain that European supervisors now want to explore. AI, tokenization: what regulators will really look at Controls will focus on governance, data, testing and results. Supervisors also want to spot bias and situations where a customer does not really understand the product offered. Another angle: dependence on technology suppliers. A bank that relies heavily on a few service providers does not eliminate its operational risk. She moves it. Tokenization raises other questions: representation of assets, recording, settlement of transactions and compatibility between infrastructures. In this area, the ECB is also making progress. It has just launched Pontes, an infrastructure for settling wholesale transactions on assets tokenized in central bank money. It is also preparing limited investments in tokenized securities. Christine Lagarde describes Pontes as a way to build a European financial market that is “more integrated, innovative and resilient in the digital age”. Supervisors are therefore learning to control these uses while Europe builds the corresponding infrastructure. Trump wants to move quickly and refuses a new layer of rules In Washington, the priority displayed is different. Donald Trump rejects the idea of new regulations on AI and presents the technological race as a power issue against China. On September 22, he also announced that official American documents would henceforth use the expression “super intelligence” instead of “artificial intelligence”. Trump says the United States must not slow down its industry or risk letting Beijing get ahead of itself. He also said the Justice Department could intervene if necessary. The subject comes directly to the table with Xi Jinping. On September 24, Trump indicated that AI would be a “big topic of discussion” with the Chinese president. The two countries also seek to maintain a channel of dialogue on risks. Brussels and Washington therefore do not speak exactly the same language. Europe strengthens supervision; the United States places more emphasis on speed and competition. Companies could therefore operate in very different frameworks. And meanwhile, China is also accelerating on AI Beijing is not waiting for the regulatory debate to be over. Chinese companies continue to develop their own models and the country is looking to integrate these technologies into more sectors. For Washington, this progression strengthens the argument against too heavy regulation. The United States and China are now directly discussing technological security. Discussions focus in particular on incidents and ways to limit certain risks. This obviously does not erase the rivalry between the two countries. For Europe, the problem is different: it has neither the American industrial power nor the weight of China. Its lever remains the one it masters best: the rules of the internal market and the supervision of financial players. ESMA thus wants to avoid discovering problems after the fact, without closing the door to uses likely to make markets faster or more accessible. It’s a balancing act. And it starts in 2027. Remember 2027 marks the start of ESMA’s new supervisory priority. Regulators will map the uses of AI and tokenization. Pontes settles tokenized assets in European central bank currency. Washington and Beijing maintain a dialogue on technological risks. The ECB remains very strict on the remuneration of stablecoins. This new surveillance is only part of the European shift. On stablecoins, the ECB also defends a strict line: these assets must not become remunerated products like deposits. A development that risks displeasing part of the crypto ecosystem. For Brussels, the message is clear: innovation yes, but with limits around money, investors and infrastructure.
- 2027: ESMA will begin to concretely control the uses of AI and tokenization in European financial companies.
- Tokenization: The ECB is developing Pontes to enable the settlement of tokenized assets directly in European central bank currency.
- United States and China: Washington and Beijing are strengthening their exchanges on technological risks while continuing their competition in AI.
After MiCA, Europe wants to look at what is happening in companies
MiCA had set the rules of the game for crypto-assets. The next step is more concrete. ESMA wants to understand how digital technologies are used in financial activities that affect customers.
There new priority is called “Innovation with Investor Safeguards”. It will begin in 2027. The authorities will first map current and planned uses, then select certain companies to carry out initial checks. The objective is to see if the control systems really follow the transformations in the sector.
ESMA summarizes its objective as follows: “ exploit rapid technological developments while ensuring investor protection “.
Change is important. A technology can be authorized on paper and, once deployed, pose problems of transparency, data quality or customer protection. It is precisely this terrain that European supervisors now want to explore.
AI, tokenization: what regulators will really look at
Controls will cover governance, data, testing and results. Supervisors also want to spot bias and situations where a customer does not really understand the product offered.
Another angle: dependence on technology suppliers. A bank that relies heavily on a few service providers does not eliminate its operational risk. She moves it.
Tokenization raises other questions: representation of assets, recording, settlement of transactions and compatibility between infrastructures. In this area, the ECB is also making progress. It has just launched Pontes, an infrastructure for settling wholesale transactions on assets tokenized in central bank money. It is also preparing limited investments in tokenized securities.
Christine Lagarde describes Pontes as a way to build a European financial market “ more integrated, innovative and resilient in the digital age “. Supervisors are therefore learning to control these uses while Europe builds the corresponding infrastructure.
Trump wants to move quickly and refuses a new layer of rules
In Washington, the priority displayed is different. Donald Trump rejects the idea of new regulations on AI and presents the technological race as a power issue against China. On September 22, he also announced that official American documents would henceforth use theexpression “super intelligence” instead of “artificial intelligence”.
Trump says the United States must not slow down its industry or risk letting Beijing get ahead of itself. He also said the Justice Department could intervene if necessary.
The subject comes directly to the table with Xi Jinping. On September 24, Trump indicated that AI would be a “ big topic of discussion » with the Chinese president. The two countries also seek to maintain a channel of dialogue on risks.
Brussels and Washington therefore do not speak exactly the same language. Europe strengthens supervision; the United States places more emphasis on speed and competition. Companies could therefore operate in very different frameworks.
And meanwhile, China is also accelerating on AI
Beijing is not waiting for the regulatory debate to be over. Chinese companies continue to develop their own models and the country is looking to integrate these technologies into more sectors. For Washington, this progression strengthens the argument against too heavy regulation.
The United States and China discuss now directly about technological security. Discussions focus in particular on incidents and ways to limit certain risks. This obviously does not erase the rivalry between the two countries.
For Europe, the problem is different: it has neither the American industrial power nor the weight of China. Its lever remains the one it masters best: the rules of the internal market and the supervision of financial players.
ESMA thus wants to avoid discovering problems after the fact, without closing the door to uses likely to make markets faster or more accessible. It’s a balancing act. And it starts in 2027.
To remember
- 2027 marks the start of ESMA’s new supervisory priority.
- Regulators will map the uses of artificial intelligence and tokenization.
- Pontes settles tokenized assets in European central bank currency.
- Washington and Beijing maintain a dialogue on technological risks.
- The ECB remains very strict on the remuneration of stablecoins.
This new surveillance is only part of the European shift. On stablecoins, the ECB also defends a strict line: these assets must not become remunerated products like deposits. A development that risks displeasing part of the crypto ecosystem. For Brussels, the message is clear: innovation yes, but with limits around money, investors and infrastructure.
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