A coalition of 39 European financial firms and technology groups is pressing EU lawmakers to accelerate the overhaul of distributed ledger technology regulations, cautioning that the region is in danger of lagging behind the US in the digital finance sector. In a joint letter, signatories including Boerse Stuttgart Group, Nasdaq, and fintech associations from multiple EU countries urged the European Commission and Parliament to detach the DLT pilot regime from a broader legislative package 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 test the trading and settlement of tokenized assets such as shares and bonds using blockchains.
However, as part of a larger set of 18 financial laws progressing through the EU's legislative process, industry groups warn that this could take years. The coalition is advocating for practical reforms, including the expansion of permissible assets, increasing transaction limits to 150 billion euros, and eliminating license expiry dates. These changes, they contend, would provide firms with the necessary flexibility to establish substantial markets rather than limited trials.
The letter comes as the US is shaping its regulatory landscape, including the proposed Genius Act, aimed at further integrating crypto into mainstream finance. The European Commission has indicated a preference for passing the entire legislative package as a unified component of its strategy to mobilize savings into investment.