Leading European financial institutions and tech companies are pressing lawmakers to accelerate reforms governing distributed ledger technology, cautioning that the region may lag 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 appealed to the European Commission and Parliament to detach the digital ledger technology pilot regime from a broader legislative package currently under review. By handling these 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 like shares and bonds using blockchain technology. However, it is currently part of a larger set of 18 financial laws progressing through the EU's legislative process, which industry groups warn could take years to complete.
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 space 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 collectively as part of its broader strategy to mobilize savings into investment.