EU at risk of falling behind the U.S. in tokenization rules, digital asset firms warn

A coalition of eight EU-regulated digital asset firms, including Securitize and Boerse Stuttgart Group's Seturion, warned EU policymakers that the bloc risks losing its early lead in blockchain-based asset tokenization to the U.S. if immediate changes are not made to the Distributed Ledger Technology (DLT) Pilot Regime. The firms argue that current cautious limitations, such as low transaction volume caps (€6-€9 billion) and a six-year license limit, are creating a "success trap" while the U.S. accelerates progress, citing the SEC's recent no-action letter to the DTCC enabling full-scale tokenized settlement. They project the U.S. could gain a four-year head start before the EU's comprehensive Market Integration and Supervision Package (MISP) takes effect in 2030. To prevent global liquidity from migrating permanently to U.S. markets, the firms urged removing asset restrictions, raising the transaction cap to €100-€150 billion, and eliminating the time constraint on licenses, emphasizing that the EU must act now to maintain competitiveness.

(Source：CoinDesk)