A coalition of 39 European financial firms and technology groups is pressing lawmakers to accelerate reforms governing distributed ledger technology, cautioning that the region may lag behind the US in the digital finance sector. In a joint letter to the European Commission and Parliament, signatories including Boerse Stuttgart Group and Nasdaq are advocating for the separation of the DLT pilot regime from a broader package of 18 financial laws currently under review. By handling these rules independently, the firms argue that updates can be implemented more swiftly. The DLT pilot, established in 2023, enables companies to test the trading and settlement of tokenized assets such as shares and bonds using blockchain technology.
However, its inclusion in a larger legislative package may lead to a prolonged review process. The coalition is seeking practical reforms, including the expansion of permissible assets, increased transaction limits, and the removal of license expiry dates. These changes would provide firms with the flexibility to establish substantial markets rather than limited trials. This development occurs 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 as part of its strategy to mobilize savings into investments.