A coalition of European financial institutions and technology companies is calling on lawmakers to accelerate the reform of distributed ledger technology regulations, cautioning that the region may lag behind the US in the digital finance sector. In a joint statement, 39 signatories, including prominent firms such as Boerse Stuttgart Group and Nasdaq, as well as fintech associations from multiple EU countries, urged the European Commission and Parliament to separate the DLT pilot regime from a broader legislative package currently under review. According to the signatories, handling the regulations independently would enable more rapid updates, as reported by Bloomberg. The DLT pilot, which has been in place since 2023, allows companies to test the trading and settlement of tokenized assets, such as shares and bonds, using blockchain technology.
Currently, the DLT pilot is part of a larger set of 18 financial laws navigating the EU's legislative process, a journey that industry groups claim could take several years. The coalition is advocating for practical reforms, including the expansion of permitted asset types, the increase of transaction limits to 150 billion euros ($176 billion), and the removal of license expiry dates. These changes, they argue, would provide companies with the flexibility to establish robust markets rather than limited trials. The letter coincides with the US 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 comprehensive legislative package as a whole, as part of its broader strategy to mobilize savings and stimulate investment.