A coalition of 39 European financial institutions and technology companies is pushing for the European Union to accelerate the development of its blockchain pilot program, warning that delays could allow the US to take the lead in digital finance. In a joint letter to the European Commission and Parliament, the group, which includes Boerse Stuttgart Group and Nasdaq, is requesting that the blockchain pilot regime be separated from a broader package of 18 financial laws currently under review. This would enable faster updates and allow companies to build more substantial markets, rather than just conducting small-scale trials. The pilot program, which has been in place since 2023, permits firms to test the use of blockchain technology for trading and settling tokenized assets such as shares and bonds.
The coalition is seeking practical changes, including the expansion of allowed asset types, increased transaction limits, and the removal of license expiry dates. These changes would provide companies with the flexibility to develop more comprehensive markets.
The letter comes as the US is shaping its own laws regulating the space, including the proposed Genius Act, which aims to bring crypto further into mainstream finance. However, the European Commission has indicated a preference for passing the full legislative package together as part of its broader plan to mobilize savings into investment.