A coalition of European financial institutions and technology companies is pressing lawmakers to accelerate the revision of distributed ledger technology regulations, cautioning that the region is in danger of lagging behind the US in the digital finance sector. In a joint letter, 39 signatories, including prominent firms such as Boerse Stuttgart Group and Nasdaq, as well as fintech associations from several EU countries, have requested that the European Commission and Parliament isolate the DLT pilot regime from a broader legislative package currently under review.
By doing so, they argue that updates can be implemented more quickly, according to Bloomberg. The DLT pilot, established in 2023, enables companies to test the trading and settlement of tokenized assets, such as shares and bonds, using blockchain technology. However, it is currently part of a larger set of 18 financial laws making their way through the EU's legislative process, a journey that industry groups warn could take years to complete.
The coalition is advocating for practical reforms, including the expansion of permitted asset types, the increase of transaction limits to 150 billion euros, and the elimination of license expiry dates. These changes, they contend, would provide firms with the flexibility to establish genuine markets rather than merely conducting small-scale trials.
This development comes as the US is shaping its own laws to regulate the space, including the proposed Genius Act, aimed at further integrating crypto into mainstream finance. The European Commission has indicated its preference for passing the entire legislative package as a unified whole, as part of its broader strategy to mobilize savings into investments.