Top European financial institutions and tech companies are pressing EU lawmakers to accelerate reforms governing distributed ledger technology, citing the risk of the region lagging behind the US in digital finance. In a joint letter, 39 signatories - including Boerse Stuttgart Group, Nasdaq, and several EU fintech associations - urged the European Commission and Parliament to detach the DLT pilot regime from a broader package of 18 financial laws currently under review. By handling the DLT rules independently, the industry argues that updates can be implemented more swiftly, according to Bloomberg. The DLT pilot, launched in 2023, enables firms to test the trading and settlement of tokenized assets like shares and bonds using blockchain technology.
However, it is currently part of a larger legislative package that could take years to pass. The industry coalition is advocating for practical reforms, including the expansion of permissible assets, increased transaction limits to 150 billion euros, and the removal of license expiry dates. These changes, they contend, would allow companies to establish substantial markets rather than limited trials.
The letter coincides with the US shaping its regulatory framework for the industry, 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 together as part of its strategy to mobilize savings into investments.