In response to the European Commission’s consultation on the creation of the 28th Regime, the European Digital Finance Association (EDFA) has launched a dedicated Task Force to coordinate stakeholder input and align national positions across Europe.

What is the 28th Regime?

The 28th Regime refers to a voluntary, EU-wide legal framework designed to help innovative companies, especially startups and scaleups, to overcome regulatory fragmentation across Member States. The 28th regime is not related to a specific Fintech vertical but applies to all Fintech Verticals.

It will offer:

·   A single set of rules, potentially progressive and modular

·   A digital-by-default EU corporate legal framework

·   Simplified pathways for setting up, scaling, and operating across the Single Market

This initiative is especially relevant for Fintechs and their advisors, as it will significantly simplify the onboarding process for SMEs.

The Call for Evidence

The European Commission has opened a Call for Evidence to support the design of the 28th Regime—a voluntary EU-wide legal framework aimed at helping innovative companies overcome regulatory fragmentation across Member States. The consultation, open until 30 September 2025, invites contributions from industry players, academics, and civil society.

To actively participate, stakeholders are encouraged to complete the 28th Regime Survey, which gathers insights and feedback on the proposed legal framework.

It’s important to clarify that the 28th Regime and the European Innovation Act are distinct policy proposals. While both fall under the Commission’s broader efforts to enhance competitiveness and integrate financial markets, they serve different purposes. The 28th Regime is a specific legal proposal, with the European Parliament already having outlined its position on the upcoming legal text. In contrast, the European Innovation Act is a broader strategic initiative focused on general policy goals aimed at improving Europe’s innovation ecosystem.

Each initiative offers unique benefits for FinTechs. The 28th Regime will streamline legal processes and reduce barriers to entry across Member States, making it easier for companies to scale and operate within the EU. Meanwhile, the Innovation Act emphasizes the creation of regulatory sandboxes, improved access to finance for innovative companies, and privileged access to certain services—all of which directly support the growth and sustainability of FinTech ventures.

EDFA’s Task Force

To ensure a coordinated and impactful contribution, EDFA has created a Task Force on the 28th Regime and the European Innovation Act. Its mission includes:

·   Drafting an official EDFA statement to submit to the Commission

·   Aligning national positions among member organizations

·   Facilitating dialogue between stakeholders and EU institutions

This is a strategic opportunity for Fintechs navigating fragmented legal landscapes: the Task Force aims to build consensus and accelerate the adoption of a more harmonized regulatory framework.