The European Fund and Asset Management Association (EFAMA) published two papers calling on EU policymakers to overhaul the digital assets and post-trade rulebook to support tokenised issuance, trading and settlement at scale and address frictions highlighted in the European Commission’s Savings and Investment Union consultation. EFAMA argues that a clearer and more competitive regulatory framework is needed to enable a seamless transition from the EU’s DLT Pilot Regime to a permanent, scalable regime. On payments and stablecoins, EFAMA proposes a “multipolar” DLT cash-settlement ecosystem that allows multiple options for settling the cash leg of DLT transactions, including the European Central Bank’s wholesale central bank digital currency, tokenised deposits, commercial bank money tokens and MiCA-regulated crypto-assets used for payments. It calls for clarification and interpretative guidance to allow UCITS to invest in and hold MiCA-compliant e-money tokens as transferable securities and or as payment instruments, reflecting stablecoins’ hybrid features, and suggests that additional controls for “double issuance” stablecoins could be considered, including tighter rules on where reserves are held and on eligible reserve assets. On market infrastructure, EFAMA urges changes to securities issuance, registration, custody, transfer and settlement rules to reflect DLT capabilities and create a level playing field for new entrants, including greater openness to entities providing core infrastructure functions and unbundling of central securities depository services. It also asks for an amendment to Central Securities Depositories Regulation Article 3(2) to remove restrictions that require securities to be CSD-registered for on-venue trading and collateral use, and for the DLT Pilot Regime to be made permanent with higher thresholds and an expanded set of eligible assets, alongside further work on interoperability between CSDs and DLT registers, passporting for DLT operators and cash settlement provisions under CSDR.
European Fund and Asset Management Association 2025-09-22
European Fund and Asset Management Association urges EU reforms to MiCA and market infrastructure rules to scale tokenisation and expand the DLT Pilot Regime
EFAMA urges EU policymakers to revamp digital assets and post-trade regulations for large-scale tokenised issuance, trading, and settlement. It advocates transitioning from the EU’s DLT Pilot Regime to a permanent regime, proposing a multipolar DLT cash-settlement ecosystem and clarifications for UCITS investments in MiCA-compliant e-money tokens. EFAMA also calls for securities rule amendments to accommodate DLT capabilities and suggests making the DLT Pilot Regime permanent with expanded asset eligibility and interoperability enhancements.