Joint Letter to EU on Distributed Ledger Technology
In theory streamlined legislation across the EU should make insurance distribution a more accurate process, especially on settlements. Here’s the word from DLT Pilot Scheme operators;
Together with the Alliance of Authorised DLT Market Infrastructure Operators and Applicants under the EU DLT Pilot Regime, 21X – the world’s first fully regulated distributed ledger technology-based trading and settlement system (DLT TSS) – has addressed a joint letter to the European Commission, the European Parliament and the Council.
A copy of the full letter is available here
21X explicitly welcomes the efforts reflected in the Market Integration and Supervision Package (MISP). Recognising DLT as a strategic foundation for modern capital markets is the right and necessary step. What matters now is that this ambition translates into timely and effective application.
While the United States has already taken concrete regulatory steps to enable industrial-scale tokenization and is moving towards fully digital T+0 settlement, Europe risks remaining structurally constrained until 2030 as a result of the lengthy legislative process. Liquidity does not wait.
Against this backdrop, the Alliance proposes a targeted, minimally invasive quick fix to the existing DLT Pilot Regime, focused on three concrete points:
– Expansion of the eligible asset scope to all financial instruments, without reducing investor protection
– An increase of the current volume caps from EUR 6–9 billion to at least EUR 100–150 billion (approximately one percent of the EU equity market)
– Removal of the six-year limitation on DLT licences, to enable long-term planning certainty and investment
These adjustments represent a limited but necessary adjustment to the current DLT Pilot Regime, intended to preserve market development and the international competitiveness of the DLT-based capital market until the MISP implements the required far-reaching revisions to the DLT Pilot Regime.
In digital financial market regulation, direction and speed must advance together.
