Major European financial institutions and tech companies are pressing EU lawmakers to accelerate the overhaul of distributed ledger technology regulations, warning that the region is in danger of falling 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, have requested that the European Commission and Parliament detach the DLT pilot regime from a broader package of 18 financial laws 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 experiment with tokenized assets, such as shares and bonds, using blockchain technology. However, the pilot is currently part of a larger legislative package that is navigating the EU's legislative process, a journey that industry groups warn 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 elimination of license expiry dates. These changes, they contend, would provide firms with the necessary flexibility to establish substantial markets rather than limited trials. The letter coincides with the US's efforts to shape laws governing the space, 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 broader strategy to mobilize savings into investments.