There is no expiration to the Distributed Ledger Technology (DLT) Pilot Regime. Mairead McGuinness, the EU commissioner for Financial Services, Financial Stability, and Capital Markets Union addresses concerns about the regime’s duration in a letter to Verena Ross, chair of the European Securities and Markets Authority (ESMA).
McGuinness clarifies that there is no set expiration date, emphasising that any changes or termination would require a new legislative proposal and co-legislator approval. “If no proposal is made and adopted to amend the regime, the framework will continue to apply in its current form. And at this stage, no proposal to terminate the regime is envisaged”, says McGuinness.
Despite no authorised DLT market infrastructures under the regime and ESMA’s decision against publishing an interim report, McGuinness notes four pending applications for DLT infrastructure licenses.
With a renewed focus on the Capital Markets Union, McGuinness emphasises the regime’s role in driving innovation, enhancing market efficiency, and managing risks. “The Commission has observed with interest an increasing degree of engagement of the financial industry with DLT in recent months. In this context, it is very important that the DLT Pilot Regime creates and maintains the space for European businesses to innovate in the areas of asset tokenisation and market infrastructure.”
McGuinness acknowledges implementation challenges and assured collaborative efforts with ESMA and national competent authorities to address them, particularly through legal clarification via the Q&A process.
