Tokenization firms warn EU DLT pilot constraints risk pushing markets to the US
Tokenization firms urged EU policymakers to quickly amend DLT Pilot Regime constraints to prevent market liquidity from shifting to the US.Summary
A coalition of tokenization and market infrastructure operators, including Securitize, sent a joint letter to European policymakers warning that current constraints in the EU's Distributed Ledger Technology (DLT) Pilot Regime risk driving market activity and liquidity to the United States. The firms argue that while the long-term Market Integration and Supervision Package (MISP) is sound, its timeline delays effective changes until 2030, while restrictive elements like narrow asset eligibility, low volume caps, and licensing limits prevent scaling compared to the U.S., which is advancing rapidly toward digital settlement markets.
The group called for an immediate "quick fix" to the regime, proposing specific technical adjustments: expanding eligible assets, significantly raising the volume cap from €6-€9 billion to €100-€150 billion, and removing the six-year time limit on DLT market infrastructure licenses. They stressed these are technical adjustments to maintain competitiveness, not deregulation, and should be adopted within six months. Failure to act swiftly, they warned, risks the DLT Pilot Regime becoming a "success trap" undermined by delay, potentially harming EU capital markets and the international standing of the euro.
(Source：The Block)