Leading European financial institutions and tech companies are pressing lawmakers to accelerate the reform 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, 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 rules independently, the firms argue that updates can be implemented more swiftly.
The DLT pilot, launched in 2023, enables companies to experiment with tokenized assets, such as shares and bonds, on blockchains. However, as part of a larger legislative package, the industry groups warn that the process may take years to complete.
The coalition is advocating for practical reforms, including the expansion of permitted assets, increased transaction limits to 150 billion euros, and the removal of license expiry dates. These changes, they contend, would allow firms 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, however, has indicated a preference for passing the entire legislative package together as part of its broader strategy to mobilize savings into investment.