A coalition of 39 prominent European financial institutions and technology groups is urging lawmakers to accelerate reforms in distributed ledger technology regulations, cautioning that the region may lag behind the US in the digital finance landscape. In a joint statement, signatories including Boerse Stuttgart Group, Nasdaq, and various EU fintech associations have appealed to the European Commission and Parliament to separate the DLT pilot regime from a comprehensive package of 18 financial laws currently under review. By handling these rules independently, the coalition argues that updates can be implemented more rapidly.
The DLT pilot, established in 2023, enables firms to experiment with tokenized assets, such as shares and bonds, on blockchain platforms. However, as part of a larger legislative package, the process may take years to complete.
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 proposed changes would provide firms with the necessary flexibility to develop substantial markets rather than limited trials.
This appeal 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 and investment.