A coalition of 39 European financial institutions and tech companies is pressing for swift regulatory changes to support the growth of blockchain technology, warning that delays could allow the US to overtake the EU in the digital finance sector. In a joint letter, signatories including Boerse Stuttgart Group, Nasdaq, and various EU fintech associations are requesting that the European Commission and Parliament separate the DLT pilot regime from a larger package of financial laws. This would enable faster updates and allow companies to build robust digital markets, rather than just conducting small-scale trials. The DLT pilot, launched in 2023, permits firms to experiment with tokenized assets and blockchain-based trading and settlement.
However, its inclusion in a broader set of 18 financial laws currently under review could lead to years of delays. The industry groups are advocating for practical reforms, such as expanding the range of permitted assets, increasing transaction limits to 150 billion euros, and eliminating license expiry dates. These changes would provide companies with the flexibility to establish genuine markets.
The push for regulatory updates comes as the US is shaping its own laws to govern 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 as a single unit, as part of its strategy to mobilize savings and stimulate investment.