A coalition of 39 European financial firms and technology groups is urging 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 implemented promptly. In a joint letter, signatories including Boerse Stuttgart Group, Nasdaq, and various EU fintech associations requested that the European Commission and Parliament detach 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, 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, as part of a larger set of 18 financial laws currently navigating the EU's legislative process, the industry groups warn that this could take years. 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 amendments, they contend, would provide firms with the necessary flexibility to establish full-fledged markets rather than limited trials. This appeal comes as the US is shaping its regulatory landscape, including the proposed Genius Act, aimed at further integrating crypto into mainstream finance.
The European Commission has indicated a preference for passing the entire legislative package collectively as part of its strategy to mobilize savings into investments.