A coalition of 39 prominent European financial institutions and technology companies is urging EU lawmakers to accelerate the revision of regulations governing distributed ledger technology, citing the risk of Europe falling behind the US in the digital finance landscape. In a joint letter, signatories including Boerse Stuttgart Group, Nasdaq, and various EU fintech associations have requested that the European Commission and Parliament consider the DLT pilot regime independently of a broader package of 18 financial laws currently under review. By doing so, they argue that updates can be implemented more swiftly, as reported by Bloomberg.
The DLT pilot, established in 2023, enables firms to experiment with the trading and settlement of tokenized assets such as shares and bonds using blockchain technology. However, its inclusion within a larger legislative package, which is expected to take years to pass, has prompted industry groups to seek a more expedient approach. The coalition is advocating for practical reforms, including the expansion of permissible asset types, an increase in transaction limits to 150 billion euros, and the elimination of license expiry dates.
These modifications, they contend, would provide firms with the necessary flexibility to establish substantial markets rather than limited trials. This development 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, however, has indicated a preference for passing the entire legislative package collectively as part of its broader strategy to mobilize savings into investment.