A coalition of 39 European financial institutions and tech companies is urging lawmakers to accelerate the revision of distributed ledger technology regulations, citing the risk of Europe falling behind the US in digital finance. In a joint letter, signatories including Boerse Stuttgart Group, Nasdaq, and EU fintech associations have asked the European Commission and Parliament to detach the DLT pilot regime from a broader legislative package. This would allow for swifter updates, according to Bloomberg. The DLT pilot, launched in 2023, permits firms to test the trading and settlement of tokenized assets like shares and bonds using blockchain technology.
However, it is currently part of a larger set of 18 financial laws under review, a process that industry groups warn could take years. The coalition is advocating for practical changes, including the expansion of allowed assets, increased transaction limits to 150 billion euros, and the removal of license expiry dates. These changes, they argue, would provide firms with the flexibility to establish genuine markets rather than limited trials. The letter comes as the US is shaping its regulatory framework for the space, including the proposed Genius Act, aimed at integrating crypto into mainstream finance.
The European Commission has indicated a preference for passing the full legislative package together as part of its plan to mobilize savings into investment.