Major European financial institutions and tech companies are pushing for an acceleration of regulatory changes governing distributed ledger technology, citing the risk of the region falling behind the US in the digital finance sector. In a collaborative letter, 39 signatories - including prominent firms such as Boerse Stuttgart Group and Nasdaq, as well as fintech associations from several EU countries - have appealed to the European Commission and Parliament to detach the DLT pilot regime from a broader package of 18 financial laws currently under review.
By handling the DLT rules independently, the signatories argue that updates can be implemented more swiftly. The DLT pilot, established in 2023, enables firms to experiment with 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 process 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 firms with the necessary flexibility to establish substantial markets rather than limited trials. The 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, however, has indicated a preference for passing the comprehensive legislative package as a whole, as part of its broader strategy to mobilize savings and stimulate investment.