Financial institutions and technology companies in Europe are 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, 39 signatories, including prominent firms such as Boerse Stuttgart Group and Nasdaq, as well as fintech associations from several EU countries, have requested that the European Commission and Parliament separate the DLT pilot regime from a broader legislative package currently under review. By handling these rules independently, the firms argue that updates can be implemented more swiftly. The DLT pilot, established in 2023, enables companies to test the trading and settlement of tokenized assets, such as shares and bonds, using blockchain technology.
However, it is currently part of a larger set of 18 financial laws navigating the EU's legislative process, which industry groups warn could be a protracted process. The coalition is advocating for practical reforms, including the expansion of permissible asset types, the increase of transaction limits to 150 billion euros, and the removal of license expiry dates. These changes, they contend, would provide firms with the necessary latitude to establish substantial 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.