A coalition of European financial institutions and technology companies is pressing 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 Boerse Stuttgart Group, Nasdaq, and several EU fintech associations, have petitioned the European Commission and Parliament to detach the DLT pilot regime from a broader legislative package currently under review. By handling the rules independently, the industry argues that updates can be implemented more swiftly. The DLT pilot, established in 2023, enables firms to experiment with tokenized assets, such as shares and bonds, using blockchain technology.
However, as part of a larger set of 18 financial laws, the legislative process may take years to complete. The coalition is 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, they contend, would provide firms with the flexibility to develop substantial markets rather than limited trials.
The petition coincides with the US's efforts to establish regulatory frameworks 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 unified entity, as part of its broader strategy to mobilize investments.