A coalition of 39 European financial institutions and tech companies is urging lawmakers to accelerate reforms in distributed ledger technology regulations, cautioning that the region may lag behind the US in digital finance unless swift action is taken. In a joint letter, signatories including Boerse Stuttgart Group, Nasdaq, and EU fintech associations have appealed to the European Commission and Parliament to decouple the DLT pilot regime from a broader package of 18 financial laws currently under review. According to the signatories, handling the DLT rules independently would enable more rapid updates, as reported by Bloomberg.
The DLT pilot, launched in 2023, permits firms to experiment with tokenized assets such as shares and bonds, testing their trade and settlement using blockchain technology. Presently, the DLT pilot is part of a larger set of 18 financial laws navigating the EU's legislative process, a journey that industry groups warn may take several years. The coalition is advocating for practical reforms, including the expansion of permitted asset types, increasing transaction limits to 150 billion euros ($176 billion), and eliminating license expiry dates.
They argue that these reforms would provide firms with the necessary space to develop 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 investment.