A coalition of 39 prominent European financial institutions and technology groups is urging EU lawmakers to accelerate the revision of rules governing distributed ledger technology. They warn that without swift action, Europe risks lagging behind the US in the digital finance sector. In a joint letter, the signatories, including Boerse Stuttgart Group and Nasdaq, are requesting that the European Commission and Parliament separate the DLT pilot regime from a larger package of 18 financial laws currently under review.
This would enable quicker updates and allow companies to build substantial markets rather than limited trials. The DLT pilot, which has been in place since 2023, enables firms to test the trading and settlement of tokenized assets using blockchains. However, the coalition argues that the current legislative process could take years, hindering the growth of the industry.
To address this, they are advocating for practical changes, including the expansion of allowed assets, increased transaction limits, and the removal of license expiry dates. As the US moves forward with regulating the space, including the proposed Genius Act, the European Commission is being pressed to reconsider its approach and prioritize the DLT pilot regime.