A coalition of European financial institutions and technology companies is pressing lawmakers to accelerate the revision of distributed ledger technology regulations, cautioning that the region may lag behind the US in the digital finance sector. In a joint letter, 39 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 larger package of 18 financial laws currently under review. By handling these regulations independently, the industry groups 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 broader legislative package, the process may 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 space to establish substantial markets rather than limited trials. This development comes as the US is shaping its regulatory landscape 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 entire legislative package collectively as part of its strategy to mobilize savings into investments.