Major European financial institutions and tech companies are pressing for accelerated changes to distributed ledger technology regulations, cautioning that the region may lag behind the US in digital finance development. In a joint statement, 39 signatories, including prominent firms like Boerse Stuttgart Group and Nasdaq, as well as EU fintech associations, are asking the European Commission and Parliament to consider the DLT pilot regime separately from a broader package of 18 financial laws currently under review.
By addressing these rules independently, the firms argue that updates can be implemented more swiftly, according to Bloomberg. The DLT pilot, established in 2023, enables companies to experiment with tokenized assets, such as shares and bonds, on blockchains. Currently, the DLT pilot is part of a larger legislative package moving through the EU's legislative process, which industry groups estimate could take years to complete. The coalition is advocating for practical reforms, including the expansion of permissible assets, increasing transaction limits to 150 billion euros, and eliminating license expiration dates.
These adjustments, they contend, would allow companies to develop substantial markets rather than limited trials. This appeal comes as the US is shaping its regulatory framework for the industry, including the proposed Genius Act, aimed at further integrating crypto into mainstream finance.
The European Commission has indicated a preference for passing the entire legislative package collectively as part of its broader strategy to mobilize savings and investment.