Major European financial institutions and tech companies are pressing EU lawmakers to accelerate the revision of distributed ledger technology regulations, cautioning that the region may lag behind the US in digital finance if changes are not made promptly. In a joint letter, 39 signatories, including prominent firms such as Boerse Stuttgart Group and Nasdaq, as well as fintech associations from several EU countries, have appealed to 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 handling these rules independently, the firms argue that updates can be implemented more swiftly, according to Bloomberg. The DLT pilot, which has been in place since 2023, enables companies to test the trading and settlement of tokenized assets like shares and bonds using blockchain technology.
However, it is part of a broader set of financial laws that are progressing through the EU's legislative process, a journey that industry groups warn could 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 elimination of license expiry dates. These changes, they contend, would provide firms with the latitude to establish substantial markets rather than merely conducting small-scale trials. This appeal comes at a time when the US is shaping its regulatory framework for the space, including the proposed Genius Act, aimed at further integrating crypto into mainstream finance.
The European Commission has indicated its preference for passing the entire legislative package collectively as part of its overarching strategy to mobilize savings into investments.