EU Financial Giants Press for Accelerated DLT Reforms to Counter US Dominance

A powerful coalition of 39 European financial firms and industry bodies has formally requested that EU officials fast-track amendments to the Distributed Ledger Technology (DLT) Pilot Regime. The group, which includes Nasdaq and Boerse Stuttgart, argues that the current regulatory framework is insufficient to maintain Europe's competitiveness in the global race for tokenized finance. In a joint letter addressed to Financial Services Commissioner Maria Luis Albuquerque, the signatories urged the European Commission and Parliament to treat the DLT Pilot Regime as a standalone law. They cautioned that integrating these changes into the wider Market Integration and Supervision Package would likely lead to lengthy negotiations and stifle the region's momentum in blockchain adoption. The coalition is seeking specific pragmatic adjustments to the 2023 framework, which currently serves as a regulatory sandbox for testing blockchain-based trading and settlement. Key demands include raising the overall volume cap to €150 billion ($176 billion), expanding the range of eligible assets, and eliminating time limits on licenses. Currently, the EU regime limits testing to shares from companies valued under $588 million and bonds below $1.17 billion. In contrast, the US Securities and Exchange Commission (SEC) has already provided clarity allowing broker-dealers to custody tokenized securities and has enabled the Depository Trust & Clearing Corporation (DTCC) to launch real-world asset tokenization services. Industry participants warn that without a 'quick fix' to the pilot regime, liquidity and market activity will inevitably shift toward the US, weakening Europe's position in digital capital markets.