A coalition of 39 European financial institutions and tech companies is calling on 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 EU fintech associations are urging the European Commission and Parliament to separate the DLT pilot regime from a broader package of 18 financial laws currently under review. According to the firms, handling the regulations independently would enable more rapid updates, as reported by Bloomberg.
The DLT pilot, launched in 2023, permits companies to test the trading and settlement of tokenized assets such as shares and bonds using blockchain technology. Currently, the DLT pilot is part of a larger set of 18 financial laws progressing through the EU's legislative process, which industry groups claim could take several years to complete. The coalition is advocating for practical amendments, including the expansion of permitted asset types, increasing transaction limits to 150 billion euros ($176 billion), and eliminating license expiry dates.
They argue that these changes would allow companies to establish substantial markets rather than limited trials. The letter comes as the US is shaping its regulatory framework for the industry, including the proposed Genius Act, aimed at integrating cryptocurrency into mainstream finance. The European Commission has indicated a preference for passing the entire legislative package as a single unit, as part of its broader strategy to mobilize savings and investments.