Top European financial companies and tech groups are pressing lawmakers to accelerate reforms in distributed ledger technology regulations, cautioning that the region may lag behind the US in digital finance unless action is taken. In a joint letter, 39 signatories, including prominent firms like Boerse Stuttgart Group and Nasdaq, as well as fintech associations from several EU countries, have urged the European Commission and Parliament to consider the DLT pilot regime independently of a broader legislative package currently under review. By doing so, they argue that updates can be implemented more swiftly, as reported by Bloomberg.
The DLT pilot, established in 2023, enables companies to experiment with the use of blockchains for trading and settling tokenized assets such as shares and bonds. However, as part of a larger set of 18 financial laws progressing through the EU's legislative process, industry groups warn that this could take years. The coalition is advocating for practical reforms, including the expansion of permissible assets, an increase in transaction limits to 150 billion euros, and the elimination of license expiry dates.
These changes, they contend, would provide companies with the latitude to develop substantial markets rather than limited trials. This plea comes as the US is shaping its regulatory landscape, including the proposed Genius Act, aimed at further integrating crypto into mainstream finance. The European Commission, however, has indicated a preference for passing the entire legislative package collectively as part of its broader strategy to channel savings into investments.