A coalition of 39 European financial institutions and technology companies is urging the European Union to accelerate the revision of regulations governing distributed ledger technology. In a joint letter, the group warned that the EU is at risk of lagging behind the US in the digital finance sector if changes are not made promptly. The signatories, including prominent companies such as Boerse Stuttgart Group and Nasdaq, are requesting that the DLT pilot regime be separated from a larger package of 18 financial laws currently under review. This would enable faster updates and allow companies to build substantial markets rather than limited trials.
The DLT pilot, launched in 2023, permits firms to test the trading and settlement of tokenized assets like shares and bonds using blockchain technology. The coalition is advocating for practical amendments, such as expanding the range of permitted assets, increasing transaction limits to 150 billion euros, and eliminating expiry dates for licenses.
These changes would provide firms with the necessary flexibility to establish robust markets. 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, however, has indicated a preference for passing the entire legislative package as part of its broader strategy to mobilize savings into investment.