A coalition of 39 European financial firms and tech groups is pressing lawmakers to accelerate the revision of distributed ledger technology regulations, cautioning that the region may lag behind the US in digital finance if changes are not made promptly. In a joint letter, the signatories - including prominent names such as Boerse Stuttgart Group and Nasdaq, as well as fintech associations from several EU countries - are asking the European Commission and Parliament to consider the digital ledger technology pilot regime as a standalone entity, rather than as part of 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, which has been in place since 2023, enables firms to experiment with the trading and settlement of tokenized assets, such as shares and bonds, using blockchain technology.
However, as it is currently embedded within a larger set of 18 financial laws navigating the EU's legislative process, industry groups warn that it may take years for the rules to be finalized. 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 removal of license expiry dates. These changes, they contend, would provide firms with the necessary space to establish substantial markets, rather than merely conducting small-scale trials.
This development comes as the US is shaping its regulatory framework for the space, including the proposed Genius Act, aimed at further integrating crypto into mainstream finance. The European Commission, however, has indicated a preference for passing the full legislative package collectively, as part of its broader strategy to mobilize savings into investment.