A coalition of 39 European financial firms and tech groups is pressing lawmakers to accelerate the implementation of distributed ledger technology regulations, citing the risk of the region falling behind the US in digital finance. In a joint letter, the signatories, including prominent firms like Boerse Stuttgart Group and Nasdaq, are asking 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 rules independently, the firms believe 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, as part of a larger legislative package, the process could take years to complete. The industry groups are advocating for practical reforms, including the expansion of permissible assets, increased transaction limits to 150 billion euros, and the removal of license expiry dates.
These changes would provide firms with the necessary flexibility to establish full-fledged markets rather than limited trials. The push for regulatory adjustments comes as the US is shaping its own laws 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 together as part of its strategy to mobilize savings into investments.