A coalition of 39 prominent European financial institutions and technology groups is calling on lawmakers to expedite reforms to the rules governing distributed ledger technology, citing the risk of the region falling behind the US in the digital finance landscape. In a joint letter addressed to the European Commission and Parliament, signatories including Boerse Stuttgart Group, Nasdaq, and various EU fintech associations, are urging the separation of the DLT pilot regime from a broader package of 18 financial laws currently under review.
By handling the DLT rules independently, the firms argue that updates can be implemented more swiftly. The DLT pilot, launched in 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 legislative package, the process could take years to complete. The coalition is advocating for practical reforms, including the expansion of permissible assets, an increase in transaction limits to 150 billion euros, and the removal of license expiry dates.
These proposed changes would provide firms with the necessary flexibility to establish substantial markets rather than limited trials. The call to action 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 comprehensive legislative package in its entirety, as part of its broader strategy to mobilize savings into investments.