A coalition of 39 European financial institutions and technology companies is urging EU lawmakers to accelerate reforms governing distributed ledger technology, citing the risk of falling behind the US in the digital finance sector. In a joint letter, signatories including Boerse Stuttgart Group and Nasdaq are asking the European Commission and Parliament to detach the DLT pilot regime from a broader legislative package, allowing for more rapid updates and the creation of genuine markets. The DLT pilot, launched in 2023, enables firms to test the trading and settlement of tokenized assets using blockchain technology.
However, its inclusion in a larger set of 18 financial laws currently under review may lead to a prolonged legislative process. The industry groups are advocating for practical reforms, such as expanding the range of permitted assets, increasing transaction limits to 150 billion euros, and eliminating license expiry dates. These changes would provide firms with the necessary flexibility to establish substantial markets rather than limited trials.
The push for reform comes as the US is 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 investment.