A group of European tokenization operators has urged EU policymakers to swiftly amend the bloc’s DLT Pilot Regime, warning that current asset limits, volume caps and time-limited licenses are preventing regulated onchain markets from scaling as the United States advances toward industrial-scale tokenization and near-instant settlement.
In a joint letter coordinated ahead of an upcoming parliamentary debate, tokenization and market infrastructure companies Securitize, 21X, Boerse Stuttgart Group, Lise, OpenBrick, STX and Axiology called for targeted changes to the DLT Pilot Regime, the EU’s regulatory sandbox for tokenized securities markets.
The companies said the EU’s broader Market Integration and Supervision Package sets the right long-term direction, but warned that existing constraints are already limiting the growth of regulated tokenized products in Europe. Pointing to the United States as a key contrast, they wrote that without timely action the EU risks losing market relevance and that the structural inertia of the package delays effective application until at least 2030 — creating a critical strategic vulnerability.
They added that global liquidity will not wait if Europe remains constrained, and warned liquidity and issuance could migrate permanently to U.S. markets as onchain settlement infrastructure matures.
Rather than calling for deregulation, the firms proposed a narrow technical “quick fix” that would keep existing investor protections intact. The changes would expand the scope of eligible assets, raise current issuance caps and remove the six-year limit on pilot licenses to allow regulated operators to scale products already live in other jurisdictions.
The group said the adjustments could be adopted quickly through a standalone technical update without reopening the EU’s broader market-structure reforms, and cautioned that prolonged delays risk weakening the euro’s competitiveness in global capital markets as settlement and issuance activity shifts toward faster, fully digital market infrastructure.
U.S. regulators and exchanges have recently taken steps seen as accelerating tokenization adoption. On Dec. 11, 2025, the U.S. Securities and Exchange Commission’s Trading and Markets Division outlined how broker-dealers can custody tokenized stocks and bonds under existing customer-protection rules, signaling that blockchain-based securities will be governed within the traditional regulatory framework rather than treated as a wholly new asset class.
The SEC issued a no-action letter the same day to a DTCC subsidiary, clearing the way for a new securities market tokenization service. DTCC said its Depository Trust Company unit has been authorized to launch a service that tokenizes real-world assets already held in DTC custody.
On Jan. 28, the SEC issued guidance clarifying how it views tokenized securities, splitting them into two categories — those tokenized by issuers and those tokenized by unaffiliated third parties — a move aimed at giving companies a clearer regulatory footing as tokenization activity expands.
Alongside clearer U.S. regulatory guidance, major exchanges are exploring tokenization within traditional market infrastructure. Nasdaq has said securing SEC approval for its proposal to list tokenized stocks is a priority, and the New York Stock Exchange announced plans to develop a platform to trade tokenized stocks and ETFs, pending regulatory approval, supporting 24/7 trading and near-instant settlement using blockchain-based post-trade systems.
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