A coalition of 39 prominent European financial institutions and technology groups is pressing lawmakers to accelerate the revision of distributed ledger technology regulations, cautioning that the region may lag behind the US in the digital finance sector. In a joint letter, signatories including Boerse Stuttgart Group, Nasdaq, and fintech associations from several EU countries are asking the European Commission and Parliament to detach the digital ledger technology pilot regime from a larger package of 18 financial laws currently under review. By separating these rules, the firms believe that updates can be implemented more swiftly. The DLT pilot, which has been in place since 2023, enables companies to test the trading and settlement of tokenized assets such as shares and bonds using blockchain technology.
However, the pilot is currently part of a broader legislative package that is navigating the EU's legislative process, a journey that industry groups warn may 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 removal of license expiry dates. These changes, they argue, would provide firms with the flexibility to establish genuine markets rather than limited trials. This appeal comes as the US is shaping its regulatory framework for the space, 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 collectively as part of its broader strategy to mobilize savings into investments.