A coalition of European financial institutions and technology companies is pressing lawmakers to accelerate the revision of distributed ledger technology regulations, cautioning that the region may lag behind the US in the digital finance sector. In a joint letter, the 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 detach the DLT pilot regime from a broader package of 18 financial laws currently under review. By handling the DLT rules independently, the firms argue that updates can be implemented more swiftly.
The DLT pilot, established in 2023, enables companies to test the trading and settlement of tokenized assets, such as shares and bonds, using blockchain technology. However, the pilot is currently part of a larger legislative package that is progressing through the EU's legislative process, a journey that industry groups warn could take years to complete.
The coalition is advocating for practical reforms, including the expansion of permissible assets, the increase of transaction limits to 150 billion euros, and the elimination of license expiry dates. These changes, they contend, would provide firms with the flexibility to develop substantial markets rather than limited trials. The letter coincides with the US's efforts to establish 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 as a cohesive unit, as part of its broader strategy to mobilize savings into investments.