A coalition of 39 prominent European financial institutions and technology companies is urging lawmakers to accelerate the revision of regulations governing distributed ledger technology, cautioning that the region is at risk of lagging behind the United States in the digital finance sector. In a jointly signed letter, the firms - including Boerse Stuttgart Group, Nasdaq, and various fintech associations across the European Union - requested that the European Commission and Parliament isolate the DLT pilot regime from a broader package of 18 financial laws currently under review. By handling these rules independently, the firms argue that updates can be implemented more quickly, according to a report by 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 larger set of financial laws navigating the EU's legislative process, the pilot's progress may be hindered by a potentially lengthy review period. The coalition is advocating for practical revisions, including the expansion of permissible asset types, an increase in transaction limits to 150 billion euros, and the removal of license expiration dates.
These proposed changes, the firms contend, would provide companies with the necessary flexibility to establish genuine markets rather than limited trials. The letter coincides with the US's efforts to establish regulations for the sector, including the Genius Act, aimed at further integrating cryptocurrency into mainstream finance. The European Commission has indicated a preference for passing the comprehensive legislative package in its entirety as part of a broader strategy to mobilize savings into investments.