A coalition of European financial institutions and tech companies is pressing lawmakers to accelerate the revision of distributed ledger technology regulations, cautioning that the region may lag behind the US in digital finance if changes are not made promptly. 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 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 these rules independently, the firms argue that updates can be implemented more swiftly, according to Bloomberg. The DLT pilot, which has been in place since 2023, enables companies to test the trading and settlement of tokenized assets like shares and bonds using blockchain technology. However, the pilot is currently part of a larger set of financial laws navigating the EU's legislative process, a journey that industry groups warn could take several years.
The coalition is pushing for practical reforms, including the expansion of permitted asset types, the increase of transaction limits to 150 billion euros, and the removal of 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 landscape for the space, including the proposed Genius Act, aimed at further integrating crypto into mainstream finance.
The European Commission has indicated its preference for passing the entire legislative package collectively as part of its broader strategy to mobilize savings into investment.