A coalition of 39 European financial institutions and tech companies is pressing lawmakers to accelerate the revision of rules governing blockchain technology, citing concerns that the region may lag behind the US in digital finance development. In a joint letter to the European Commission and Parliament, the signatories - including Boerse Stuttgart Group, Nasdaq, and fintech associations from several EU countries - requested that the DLT pilot regime be separated from a broader package of 18 financial laws currently under review. By handling the DLT rules independently, the firms argue that updates can be implemented more swiftly, according to Bloomberg. The DLT pilot program, launched in 2023, enables companies to test the trading and settlement of tokenized assets, such as shares and bonds, using blockchain technology.
However, as part of a larger legislative package, the industry groups warn that the approval process could take years. The coalition is advocating for practical reforms, including the expansion of permissible assets, increased transaction limits to 150 billion euros, and the removal of license expiry dates. These changes, they contend, would allow firms to establish robust markets rather than limited trials. The letter comes as the US is shaping its regulatory framework for the industry, 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 as part of its broader strategy to mobilize savings into investments.