A coalition of 39 prominent European financial firms and technology groups is pressing EU lawmakers to accelerate the revision of distributed ledger technology regulations, citing the risk of Europe falling behind the US in the digital finance sector. In a joint letter, signatories including Boerse Stuttgart Group, Nasdaq, and various EU fintech associations, have requested that the European Commission and Parliament detach the DLT pilot regime from a broader package of 18 financial laws currently under review.
By doing so, the firms argue that updates can be implemented more swiftly, according to Bloomberg. The DLT pilot, launched in 2023, enables companies to experiment with tokenized assets, such as shares and bonds, using blockchain technology. However, as part of a larger legislative package, the process may take years to complete.
The industry coalition is advocating for practical reforms, including the expansion of permitted assets, increased transaction limits to 150 billion euros, and the removal of license expiry dates. These changes, they claim, would provide firms with the necessary flexibility to establish substantial markets rather than limited trials. The move comes 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.