A group of prominent European financial institutions and technology companies is urging EU lawmakers to accelerate the revision of regulations governing distributed ledger technology, citing concerns that the region may lag behind the US in the digital finance sector. In a joint letter, the 39 signatories, including major players such as Boerse Stuttgart Group and Nasdaq, as well as various EU fintech associations, have requested that the European Commission and Parliament consider the DLT pilot regime as a standalone entity, separate from a broader package of 18 financial laws currently under review. By doing so, they argue that updates can be implemented more swiftly, according to a report by Bloomberg. The DLT pilot, which has been in place since 2023, enables companies to experiment with the use of blockchains for the trading and settlement of 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 permissible assets, an increase in transaction limits to 150 billion euros, and the removal of license expiry dates. These changes, they contend, would provide companies with the necessary flexibility to establish substantial markets, rather than merely conducting small-scale trials. The letter comes at a time when the US is shaping its regulatory landscape for the industry, including the proposed Genius Act, which aims to further integrate cryptocurrency into mainstream finance.
The European Commission, however, has indicated a preference for passing the entire legislative package as a cohesive unit, as part of its broader strategy to mobilize savings and stimulate investment.