A coalition of 39 European financial institutions and technology companies is urging EU lawmakers to accelerate the revision of distributed ledger technology regulations, warning that Europe is at risk of falling behind the US in the digital finance sector. In a joint letter, the signatories, including prominent firms such as Boerse Stuttgart Group and Nasdaq, as well as fintech associations from several EU countries, requested that the European Commission and Parliament detach the DLT pilot regime from a broader legislative package currently under review.
By handling these rules independently, the firms argue that updates can be implemented more swiftly. The DLT pilot, which has been in place since 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 set of 18 financial laws, the legislative process may take several 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, according to the coalition, would provide firms with the necessary flexibility to establish substantial markets rather than limited trials. The push for these reforms comes as the US is shaping its own laws to regulate the space, including the proposed Genius Act, aimed at further integrating crypto into mainstream finance.
The European Commission has indicated a preference for passing the full legislative package as a whole, as part of its broader strategy to mobilize savings into investment.