European financial institutions and tech companies are calling on lawmakers to accelerate the revision of distributed ledger technology regulations, warning that the region may lag behind the US in digital finance if changes are not made promptly. 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 separate the DLT pilot regime from a larger package of 18 financial laws currently under review.
By handling the rules independently, the firms argue that updates can be implemented more quickly, according to Bloomberg. 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 broader set of 18 financial laws making their way through the EU's legislative process, the industry groups warn that the process could take years. The coalition is advocating for practical changes, including expanding the range of permitted assets, increasing transaction limits to 150 billion euros, and removing license expiration dates.
These changes, they argue, would provide companies with the flexibility to establish real markets rather than limited trials. The letter comes as the US is shaping its own laws to regulate the space, including the proposed Genius Act, aimed at further integrating crypto into mainstream finance.
The European Commission has indicated a preference for passing the full legislative package together as part of its broader plan to mobilize savings into investment.