39 Firms Urge European Union To Fast-Track DLT Pilot Regime, Separate From 18-Law Package

A coalition of 39 financial and technology firms is urging the European Union to fast-track rules for distributed ledger technology by treating the DLT pilot regime as a standalone legislative fast track, separate from a broader package of 18 financial laws.

“Cut the red tape: 39 financial giants demand an emergency fast-track for Europe's blockchain pilot The firms requested separating the DLT pilot regime from a larger package of 18 financial laws to allow for quicker updates and build real markets”

@coindesk

The firms say the DLT pilot regime, in place since 2023, lets companies test how tokenized versions of assets like shares and bonds can trade and settle using blockchains under real market conditions.

@coindesk

In a joint letter, the signatories asked the European Commission and Parliament to carve out the DLT Pilot Regime from a broader legislative package and review it as a standalone law, according to copies of the letter shared by Adan and reported by multiple outlets.

The coalition argues that folding the regime into the wider Market Integration and Supervision Package could delay reforms needed to keep pace with global developments.

TradingView reports the letter was addressed to Financial Services Commissioner Maria Luis Albuquerque and warns that “Negotiations are likely to be lengthy,” while delays “risk dampening Europe’s momentum in DLT adoption.”

The firms also push for practical changes including expanding the types of assets allowed, raising transaction limits to 150 billion euros, and removing time limits on licenses, with the letter describing the adjustments as “These pragmatic adjustments enjoy broad support among market participants across Europe.”

The push for a carve-out is grounded in how the DLT pilot regime currently operates and how the coalition says it constrains tokenized finance.

The DLT pilot, described as an EU framework launched in 2023, is a regulatory sandbox that allows temporary exemptions from certain rules so companies can experiment with blockchain-based trading and settlement of assets like stocks and bonds under real market conditions.

Cryptonews.net

TradingView says the pilot regime is part of a wider set of 18 financial laws moving through the EU’s legislative process, a path industry groups say could take years.

Under the current regime, TradingView reports that only relatively small financial products can be tested on blockchain systems, including shares from companies valued under $588 million, bonds with issuance sizes below $1.17 billion and investment funds with assets under $588 million.

The coalition is therefore asking for a “quick fix” to remove restrictions on eligible asset classes and to expand the range of eligible assets, including raising the overall volume cap to 150 billion euros and removing time limits on licenses.

The Edge Malaysia reports the signatories call for a removal of restrictions on eligible asset classes to allow all financial instruments, an increase of overall volume limits to €150 billion, and a removal of time limits on licences.

The coalition’s central justification for speed is a competitive comparison with the United States and the pace of its regulatory approach to tokenized assets and stablecoins.

“(April 21): Digital finance providers want a carve-out from forthcoming European legislation governing distributed ledger technology, arguing that Europe is losing out to the US”

The Edge Malaysia

Multiple outlets report that the firms warn Europe could fall behind the U.S. in digital finance if the EU does not move quickly, with @coindesk stating that delays could cause the region to fall behind the U.S. in digital finance.

TradingView says the group argued that folding the regime into the wider Market Integration and Supervision Package could delay reforms needed to keep pace with global developments, and it quotes the letter’s language about lengthy negotiations and dampened momentum.

The Edge Malaysia frames the letter as arguing that “Supported by leading financial institutions and technology firms, the US is rapidly establishing itself as a global frontrunner in tokenised assets,” and it adds a warning that “If Europe doesn’t act swiftly, it risks ceding this strategic field to others, who will set global standards instead of us.”

The letter also points to the U.S. passing the Genius Act last year as a new regulatory framework for stablecoins championed by US President Donald Trump, which the advocates say will broaden adoption of digital assets in everyday finance.

In parallel, TradingView describes how the U.S. has moved to integrate tokenized securities into its existing financial system, including the Securities and Exchange Commission (SEC) clarifying that broker-dealers can custody tokenized stocks and bonds under current investor protection rules.

While the the coalition argues for a carve-out, the coverage also shows the European Commission’s preference for passing the full legislative package together, which the firms say could prolong uncertainty.

@coindesk reports that the European Commission “prefers passing the full package together,” and it describes the DLT pilot as sitting within a wider set of 18 financial laws moving through the EU’s legislative process.

TradingView

TradingView similarly says the group argued that folding the regime into the wider Market Integration and Supervision Package could delay reforms, and it frames the letter as urging EU officials and lawmakers to carve out the DLT Pilot Regime from a broader legislative package.

WEEX adds that the European Commission is currently promoting a rapid resolution of the entire regulatory scheme and views it as a key part of the Capital Markets Union plan, while Financial Services Commissioner Maria Luis Albuquerque has previously called for all legislative proposals to be passed in sync.

The Edge Malaysia provides a direct contrast by stating that singling out legislation for the DLT pilot regime will run counter to the ambitions presented by Commissioner Albuquerque who repeatedly called for all pieces of legislation to be adopted simultaneously.

Across the outlets, the coalition’s request is consistent: separate the DLT pilot regime from new legislation, expedite the review, remove asset class restrictions, increase the total trading volume cap to €150 billion, and eliminate license time limits.

The reporting identifies key signatories and the geographic breadth of the coalition, while also laying out what the firms want changed in the DLT pilot regime.

“39 institutions including Nasdaq call on the EU to separate the DLT pilot regime from new legislation and expedite the review to respond to competition from the US According to Bloomberg, 39 signatories, including Nasdaq, Stuttgart Stock Exchange Group, and various financial technology associations, are calling on the European Commission and the European Parliament to treat the distributed ledger technology pilot system as an independent legislative fast track and to separate it from the EU market integration and supervision scheme”

WEEX

The Edge Malaysia names Boerse Stuttgard Group and Nasdaq Inc and says fintech associations from France, Spain, Italy, Hungary and Poland are among 39 signatories, tying the letter to a multi-country industry push.

WEEX

@coindesk and Cryptonews both describe the signatories as including Boerse Stuttgart Group and Nasdaq, and they say the letter was sent to the European Commission and Parliament.

TradingView adds that the letter was shared by crypto association Adan and that Cointelegraph reached out to Nasdaq and Boerse Stuttgart for comment but had not received a response by publication.

The coalition’s requested changes are detailed across outlets: raising DLT transaction limits to 150 billion euros, removing license expiry dates or time limits on licences, and expanding eligible asset classes so that more financial instruments can be tested.

In terms of next steps, the coalition is effectively demanding that EU policymakers treat the DLT pilot regime as an independent legislative fast track and expedite the review, as described by WEEX and TradingView.