A coalition of 39 European financial firms and technology groups is pressing lawmakers to accelerate changes to distributed ledger technology regulations, warning that the region is in danger of falling behind the US in the digital finance sector. In a jointly signed letter, the group - which includes prominent names such as Boerse Stuttgart Group and Nasdaq, as well as fintech associations from several EU countries - is asking the European Commission and Parliament to separate the DLT pilot regime from a larger package of 18 financial laws currently under review. By handling the DLT rules independently, the group argues that updates can be implemented more quickly. The DLT pilot, established in 2023, enables companies to test the use of blockchains for trading and settling tokenized assets such as shares and bonds.
However, as part of a broader set of financial laws, the pilot is currently tied up in the EU's legislative process, which industry groups claim could take years to complete. The coalition is advocating for practical reforms, including the expansion of permitted assets, an increase in transaction limits to 150 billion euros, and the removal of license expiry dates. These changes, they contend, would provide companies with the necessary room to establish genuine markets rather than limited trials.
The letter comes at a time when the US is shaping its own regulatory framework for the space, including the proposed Genius Act, aimed at further integrating crypto into mainstream finance. The European Commission, however, has indicated a preference for passing the full legislative package as a single entity, as part of its broader strategy to mobilize savings and stimulate investment.