Major European financial institutions and tech companies are pressing lawmakers to accelerate reforms governing distributed ledger technology, 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 detach the DLT pilot regime from a broader package of 18 financial laws currently under review.
By handling the rules independently, the firms argue that updates can be implemented more swiftly, as reported by Bloomberg. The DLT pilot, initiated in 2023, enables companies 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 financial laws making its way through the EU's legislative process, which industry groups warn could take years to complete. The coalition is advocating for practical reforms, including the expansion of permitted asset types, an increase in 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 robust markets rather than limited trials. The letter comes at a time when the US is shaping its regulatory landscape for the sector, including the proposed Genius Act, aimed at further integrating crypto into mainstream finance.
The European Commission has indicated a preference for passing the entire legislative package collectively as part of its broader strategy to channel savings into investments.