A coalition of European financial firms and tech groups is calling on EU lawmakers to accelerate the revision of distributed ledger technology regulations, cautioning that the region is at risk of being outpaced by the US in the digital finance sector. In a joint letter, 39 prominent signatories, including Boerse Stuttgart Group and Nasdaq, have petitioned the European Commission and Parliament to detach the DLT pilot regime from a more comprehensive legislative package currently under review. By handling these rules separately, the firms argue that updates can be implemented more quickly, according to Bloomberg.
The DLT pilot, launched in 2023, enables companies to test the trading and settlement of tokenized assets like shares and bonds using blockchain technology. However, it is currently part of a broader set of 18 financial laws making their way through the EU's legislative process, a journey that industry groups claim could take years to complete. The coalition is advocating for practical reforms, including the expansion of permitted asset types, the increase of transaction limits to 150 billion euros, and the elimination of license expiry dates.
These changes, they contend, would provide firms with the necessary room to establish genuine markets rather than limited trials. This development comes as the US is shaping its regulatory framework for the space, including the proposed Genius Act, aimed at further integrating crypto into mainstream finance. The European Commission has indicated its preference for passing the entire legislative package as a cohesive unit, as part of its broader strategy to mobilize savings into investments.