European financial institutions and tech companies are pressing lawmakers to accelerate reforms in distributed ledger technology regulations, cautioning that the region may lag behind the US in digital finance if changes are not made promptly. 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, urged the European Commission and Parliament to consider the DLT pilot regime independently of a broader package of 18 financial laws currently under review.
By doing so, they argue that updates can be implemented more quickly, according to Bloomberg. The DLT pilot, initiated in 2023, enables companies to experiment with the trading and settlement of tokenized assets like shares and bonds using blockchain technology.
However, as part of a larger legislative package, the process may take years to complete, prompting industry groups to advocate for a more streamlined approach. The coalition is seeking 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 adjustments, they contend, would allow companies to establish substantial markets rather than limited trials. This appeal 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 entire legislative package as part of its comprehensive plan to channel savings into investments.