A coalition of 39 European financial institutions and technology groups is pressing lawmakers to expedite the revision of regulations governing distributed ledger technology, cautioning that the region may lag behind the US in the digital finance sector. In a joint letter, signatories including Boerse Stuttgart Group, Nasdaq, and fintech associations from several EU countries have requested that the European Commission and Parliament detach the digital ledger technology pilot regime from a larger package of 18 financial laws currently under review. By handling these rules independently, they argue that updates can be implemented more swiftly.
The DLT pilot, which has been in place since 2023, enables firms to test the trading and settlement of tokenized assets like shares and bonds using blockchain technology. However, as part of a broader set of financial laws, the legislative process may take years to complete.
The coalition is advocating for practical reforms, including the expansion of permitted asset types, the increase of transaction limits to 150 billion euros, and the elimination of license expiry dates. These proposed changes, they contend, would provide firms with the flexibility to establish substantial markets rather than limited trials. This appeal comes as the US is shaping its regulatory landscape for the sector, including the proposed Genius Act, aimed at integrating crypto into mainstream finance.
The European Commission, however, has indicated a preference for passing the entire legislative package collectively as part of its broader strategy to mobilize savings into investments.