A coalition of European financial institutions and tech companies is urging policymakers to accelerate the revision of regulations governing distributed ledger technology, cautioning that the region may lag behind the US in the digital finance sector. In a collaborative letter, 39 signatories, including major players 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 larger package of 18 financial laws currently under review. By handling the rules independently, the firms argue that updates can be implemented more swiftly.
The DLT pilot, launched in 2023, enables companies to experiment with tokenized assets, such as shares and bonds, on blockchains. However, as part of a broader legislative package, the process may take years to complete. The industry coalition is advocating for pragmatic changes, including the expansion of permitted assets, increased transaction limits to 150 billion euros, and the removal of license expiry dates. These adjustments, they contend, would provide firms with the flexibility to establish substantial markets rather than limited trials.
The letter coincides with the US's efforts to regulate the space, including the proposed Genius Act, aimed at integrating crypto into mainstream finance. The European Commission, however, has indicated a preference for passing the entire legislative package collectively as part of its strategy to mobilize savings into investments.