A coalition of European financial firms and tech companies is pressing lawmakers to accelerate reforms in distributed ledger technology regulations, warning that delays could allow the US to overtake Europe in the digital finance sector. In a joint letter to the European Commission and Parliament, 39 signatories - including prominent exchanges and fintech associations - requested that the DLT pilot regime be separated from a larger package of 18 financial laws currently under review.
This would enable faster updates and allow companies to build more substantial markets, rather than limited trials. The DLT pilot, introduced in 2023, enables firms to experiment with tokenized assets and blockchain-based trading and settlement.
However, its inclusion in a broader legislative package could lead to years of delays, according to industry groups. The coalition is 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 reform comes as the US is shaping its own laws and regulations for the sector, 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 part of its strategy to mobilize savings and investment.