A coalition of European financial institutions and tech companies is pressing lawmakers to accelerate the revision of distributed ledger technology regulations, cautioning that the region may lag behind the US in the digital finance sector. In a joint letter, 39 signatories, including prominent firms like Boerse Stuttgart Group and Nasdaq, as well as fintech associations from several EU countries, requested that the European Commission and Parliament separate the DLT pilot regime from a larger legislative package currently under review. By handling these rules independently, the firms argue that updates can be implemented more swiftly. The DLT pilot, introduced in 2023, permits companies to experiment with tokenized assets, such as shares and bonds, using blockchain technology for trading and settlement.
However, this pilot is part of a broader set of 18 financial laws currently navigating 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, increasing transaction limits to 150 billion euros, and eliminating license expiry dates. These changes, they contend, would provide firms with the necessary flexibility to establish genuine markets rather than limited trials. This development comes as the US is shaping its regulatory landscape, including the proposed Genius Act, aimed at integrating crypto into mainstream finance.
The European Commission has indicated a preference for passing the entire legislative package collectively as part of its strategy to mobilize savings into investments.