A coalition of 39 prominent European financial institutions and technology companies is pressing for accelerated regulatory changes to support the development of distributed ledger technology. In a joint letter to the European Commission and Parliament, the group - which includes Boerse Stuttgart Group, Nasdaq, and various fintech associations - advocates for the separation of the DLT pilot regime from a larger package of 18 financial laws. This would enable more rapid updates and facilitate the creation of genuine markets.
The DLT pilot, introduced in 2023, permits companies to experiment with the use of blockchains for the trading and settlement of tokenized assets such as shares and bonds. However, the current legislative process, which encompasses 18 financial laws, is expected to be a protracted one. The coalition is seeking pragmatic reforms, including the expansion of permissible assets, increased transaction limits, and the removal of license expiry dates. These adjustments would provide companies with the necessary latitude to establish robust markets rather than limited trials.
The move comes as the US is shaping its own regulatory framework for the industry, including the proposed Genius Act, aimed at 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 investment.