ADAN’s Response to the European Commission’s Consultation on the Integration of EU Capital Markets

ADAN has submitted its response to the European Commission's consultation on the integration of EU capital markets

Promoting market infrastructure based on distributed ledger technology (DLT) is essential to enabling pan-European and cross-border access to liquidity. The use of DLT enables instant, transparent, secure, and lower-cost transactions across jurisdictions, allowing for the efficient mobilization of liquidity within the EU and globally—a key step toward achieving a true capital markets union.

Here are the key points of our response:

- A more ambitious version of the pilot scheme for DLTs is essential. In order to achieve the desired results, it should be amended in several key areas:
a) The thresholds for the volume of tokenized financial instruments issued and traded should be raised significantly.
b) The list of eligible financial assets should be expanded to include all financial instruments.
c) The current six-year limit should be permanently removed to provide pilot program participants with the long-term stability and predictability needed to launch innovative projects.
d) Allow stablecoins and tokenized bank money to improve settlement efficiency and the interoperability necessary to ensure cross-border mobility.

- Adapt legal frameworks to include all types of financial instruments in the pilot program and authorize crypto ETFs, while ensuring that regulations are aligned with the operational realities of markets based on distributed ledger technology (DLT);

- Streamline licensing procedures and harmonize supervisory standards across Member States to reduce administrative burdens and costs;
We believe these measures are essential to ensuring an innovative, competitive, and integrated capital markets landscape.