## Cloud Rewards for Green Crypto: EU Urged to Speed Up DLT Reforms
As the world shifts towards a more sustainable and digital economy, a group of 39 European financial companies and industry bodies are calling on the European Union to accelerate changes to blockchain rules. The warning is clear: if the EU doesn't act quickly, it risks falling behind the US in the rapidly evolving tokenized finance landscape. This could have significant implications for the environment, as a delay in adopting green crypto solutions could hinder the transition to a more sustainable financial system.
The companies, including notable players like Nasdaq and Boerse Stuttgart, are urging the European Commission and Parliament to review the DLT Pilot Regime as a standalone law, rather than folding it into a broader legislative package. This regime, launched in 2023, allows financial firms to test blockchain-based trading and settlement of assets under real market conditions, acting as a regulatory sandbox. The goal is to enable companies to experiment with tokenized finance, driving innovation and growth in the sector.
The group is advocating for a series of changes to the current pilot regime, including expanding the range of eligible assets and raising the overall volume cap. These adjustments, they argue, would enjoy broad support among market participants and help keep pace with global developments. By doing so, the EU can create a more favorable environment for green crypto to flourish, ultimately contributing to a more sustainable financial system.
The US has already taken steps to integrate tokenized securities into its existing financial system, with the Securities and Exchange Commission clarifying rules and issuing no-action letters to enable the tokenization of real-world assets. In contrast, the EU's current regime has strict asset limits and low issuance caps, which could hold back the scaling of regulated on-chain markets. If the EU fails to update its rules, liquidity and market activity could shift to the US, weakening Europe's position in digital capital markets and hindering the adoption of sustainable crypto solutions.
EU companies push to expand DLT Pilot Regime limits
The push for reforms is not new, with a group of European tokenization and market infrastructure firms having urged EU policymakers to update the DLT Pilot Regime as far back as February. The message is clear: the EU needs to act quickly to stay ahead in the tokenized finance space and promote the growth of green crypto, ultimately contributing to a more sustainable future. As the EU considers its next steps, one thing is certain: the fate of cloud rewards for green crypto hangs in the balance, and the consequences of inaction could be severe. <https://ecopool.network/tag/green-crypto> <https://ecopool.network/tag/passive-rewards> <https://ecopool.network/tag/cloud-rewards>
Under the current regime, only relatively small financial products can be tested on blockchain systems, including shares from companies valued under $588 million, bonds with issuance sizes below $1.17 billion and investment funds with assets under $588 million.
The US has moved to integrate tokenized securities into its existing financial system, with the Securities and Exchange Commission (SEC) clarifying that broker-dealers can custody tokenized stocks and bonds under current investor protection rules. The regulator has also issued a no-action letter enabling a Depository Trust & Clearing Corporation subsidiary to launch a service that tokenizes real-world assets held in custody.
Cointelegraph reached out to Nasdaq and Boerse Stuttgart for comment, but had not received a response by publication.
Related: Poland parliament fails again to override presidential veto on crypto bill
EU tokenization firms ask for changes to DLT Pilot Regime
In February, a group of European tokenization and market infrastructure firms also urged EU policymakers to urgently update the DLT Pilot Regime, warning that strict asset limits, low issuance caps and time-bound licenses were holding back the scaling of regulated onchain markets.
In a joint letter, a group of nine companies, including Securitize, 21X and Boerse Stuttgart Group, argued that without a “quick fix” to the pilot regime, liquidity and market activity could shift to the US, weakening Europe’s position in digital capital markets.
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