Top 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 like Boerse Stuttgart Group and Nasdaq, as well as fintech associations from several EU nations, requested that the European Commission and Parliament isolate the digital ledger technology pilot regime from a broader legislative package currently under review. By handling these rules independently, updates could be implemented more swiftly, according to Bloomberg.
The DLT pilot, established in 2023, enables companies to experiment with tokenized assets, such as shares and bonds, on blockchains. 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 permitted assets, increasing transaction limits to 150 billion euros, and eliminating license expiry dates.
These changes, they argue, would provide companies with the flexibility to develop substantial markets rather than limited trials. This appeal comes as the US is shaping its regulatory landscape, 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 strategy to mobilize savings into investments.