A coalition of 39 major European financial firms and tech groups is urging lawmakers to accelerate the development of blockchain regulations, warning that the region is at risk of falling behind the US in the digital finance sector. In a joint letter, the signatories, including Boerse Stuttgart Group and Nasdaq, have requested that the European Commission and Parliament remove the DLT pilot regime from a broader package of 18 financial laws currently under review, citing the need for quicker updates and the ability to build functional markets. The DLT pilot, launched in 2023, allows companies to test the use of blockchain technology for the trading and settlement of tokenized assets such as shares and bonds.
However, the coalition argues that the current legislative process could take years, and is pushing for practical changes, including the expansion of allowed assets, increased transaction limits, and the removal of license expiry dates. This comes as the US is shaping its own laws and regulations for the crypto space, including the proposed Genius Act, which aims to bring crypto further into mainstream finance.
The European Commission, however, has indicated a preference for passing the full legislative package together as part of its broader plan to mobilize savings into investment.