Nine EU tokenization firms have written to European regulators asking for fast track changes to the DLT Pilot Regime, the legislation that relaxes certain rules to support tokenization. In December the European Commission announced a broad package of legislation, the Market Integration and Supervision Package (MISP), that included numerous updates to the DLT Pilot Regime to make it more attractive to institutions, both large and small. As soon as it was announced, multiple DLT Pilot licensees welcomed the changes, but they immediately raised concerns about how long it would take to enact the legal amendments.
Today’s letter suggests that it will be 2030 before the changes are implemented. This contrasts with the regulatory exemption provided in the US to the DTCC in December which will enable implementation stateside later this year. “If Europe remains constrained until 2030, global liquidity will not wait – it will migrate permanently to U.S. markets,” the signatories stated.
The letter focuses on three specific MISP updates that the firms want expedited. First is the expansion of the types of assets that can be included. Second is the increase in the platform volume limits from €6 – €9 billion to €100 to €150 billion. Finally, they request the removal of the six year license limit.
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