Major European financial institutions and tech companies are pressing lawmakers to accelerate reforms to distributed ledger technology regulations, warning that the region is in danger of lagging behind the US in the digital finance sector. In a joint letter, 39 prominent signatories, including Boerse Stuttgart Group and Nasdaq, have called on the European Commission and Parliament to detach the DLT pilot regime from a broader package of 18 financial laws currently under review. By handling these rules separately, the firms argue that updates can be implemented more quickly, according to Bloomberg.
The DLT pilot, which has been in place since 2023, enables companies to test the use of blockchains for trading and settling tokenized assets such as shares and bonds. However, as part of a larger legislative package, the industry groups warn that the process could take years to complete. 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 provide firms with the flexibility to establish genuine markets rather than limited trials. The letter comes at a time when the US is shaping its own laws to regulate the space, including the proposed Genius Act, aimed at further integrating crypto into mainstream finance.
The European Commission has indicated a preference for passing the full legislative package as a single unit, as part of its broader strategy to mobilize savings and stimulate investment.