EU Tokenization Companies Urge DLT Pilot Regime Changes

EU Firms Push for Expanded DLT Transaction Caps

European tokenization companies, including Securitize and 21X, have submitted a letter urging changes to the DLT Pilot Regime. They aim to prevent liquidity circulation away from the EU to more lucrative markets in the US.

The entities are advocating for increasing the transaction volume caps and broadening eligible assets under the current pilot program. These adjustments are intended to retain competitiveness within the EU’s digital asset market.

Proposed €100 Billion Cap to Retain EU Market Position

The request seeks to raise transaction limits from €6-9 billion to €100-150 billion under the regime. This change could lead to increased participation and prevent potential institutional migration to the US government outlines cryptocurrency policy and regulations.

Experts suggest that larger volume allowances and expanded asset coverage can bolster local markets. The initiative underscores the urgency for the EU to remain competitive amid global regulatory changes.

Aligning EU DLT Standards with Global Initiatives

The DLT Pilot Regime, operational from 2022 through 2026, mirrors global initiatives like the US DTCC exemption. Past efforts have faced criticism for restrictive volume caps and limited asset inclusion.

Analysts from Kanalcoin predict that expanding the EU’s pilot program can align it more closely with international standards, enhancing market attractiveness and reducing the risk of liquidity loss to the US.

“We urge EU policymakers to expand the eligible assets and raise transaction volume caps to ensure we can keep pace with the rapid advancements in the US market.”