European financial firms and technology groups are urging lawmakers to speed up changes to rules governing distributed ledger technology, warning the region risks falling behind the U.S. in digital finance.
In a joint letter, 39 signatories including Boerse Stuttgart Group, Nasdaq and fintech associations across several European Union (EU) countries asked the European Commission and Parliament to separate the digital ledger technology (DLT) pilot regime from a broader legislative package under review.
They argue that handling the rules on their own would allow quicker updates, Bloomberg reports. The DLT pilot, in place since 2023, lets firms test how tokenized versions of assets like shares and bonds can trade and settle using blockchains.
It sits within a wider set of 18 financial laws now moving through the EU’s legislative process, a path industry groups say could take years.
The coalition is pushing for practical changes, including expanding the types of assets allowed, raising transaction limits to 150 billion euros ($176 billion) and removing expiry dates on licenses. These changes, they argue, would give firms room to build real markets rather than small trials.
The letter comes as the U.S. shapes laws regulating the space, including the Genius Act, meant to help bring crypto further into mainstream finance.
The European Commission has signaled it prefers to pass the full legislative package together as part of its broader plan to mobilize savings into investment.