A coalition of European financial institutions and technology companies is urging policymakers to accelerate reforms governing distributed ledger technology, citing concerns that the region may lag behind the US in the digital finance sector. In a joint letter, the 39 signatories, including prominent firms such as Boerse Stuttgart Group and Nasdaq, as well as fintech associations from several EU countries, have requested that the European Commission and Parliament consider the DLT pilot regime independently of a broader package of 18 financial laws currently under review. By doing so, they argue that updates can be implemented more quickly, according to Bloomberg.
The DLT pilot, introduced in 2023, enables companies to test the trading and settlement of tokenized assets, such as shares and bonds, using blockchain technology. However, as part of a larger legislative package, the industry groups warn that the review process could take years.
The coalition is advocating for practical reforms, including the expansion of permitted assets, an increase in transaction limits to 150 billion euros, and the removal of license expiry dates. These changes, they contend, would allow companies to establish genuine markets rather than limited trials. The letter comes as the US is 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 entire legislative package together as part of its broader strategy to mobilize savings into investment.