A coalition of European financial institutions and technology groups 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, the 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 digital ledger technology pilot regime from a broader legislative package currently under review.
This detachment, the signatories argue, would facilitate quicker updates, as reported by Bloomberg. The DLT pilot, which has been in place since 2023, enables firms to test the trading and settlement of tokenized assets, such as shares and bonds, using blockchain technology. However, the pilot is part of a larger set of 18 financial laws currently navigating 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 reforms, they contend, would provide firms with the necessary space to establish substantial markets rather than merely conducting small-scale trials. The letter coincides with the US's efforts to shape laws regulating the crypto space, including the proposed Genius Act, aimed at integrating crypto into mainstream finance.
The European Commission has indicated its preference for passing the entire legislative package collectively as part of its broader strategy to mobilize savings into investments.