A coalition of tokenization operators from Europe is urging EU lawmakers to swiftly revise the DLT Pilot Regime, highlighting that the current framework’s asset limits, volume restrictions, and time-bound licenses hinder the scalability of regulated on-chain markets while the US gears up for substantial tokenization and quick settlements.

In a collaborative letter sent before a vital parliamentary discussion, firms such as Securitize, 21X, Boerse Stuttgart Group, Lise, OpenBrick, STX, and Axiology have called for specific amendments to the DLT Pilot Regime, a framework for tokenized security markets in the EU.

While acknowledging that the broader Market Integration and Supervision Package sets a positive long-term pathway, these companies conveyed that present limitations are constraining the expansion of compliant tokenized assets in Europe. They pointedly noted:

“Without timely action on the DLT Pilot Regime, the EU risks losing market relevance. The structural inertia of this package delays effective application until at least 2030 — creating not a temporary setback, but a critical strategic vulnerability.”

The group warned that global liquidity will not remain patient, signaling that if Europe stays restricted, it might permanently shift to the US market as on-chain infrastructure continues to advance.

Instead of seeking to minimize regulation, they suggested a focused technical ‘quick fix’ to expand the range of eligible assets, raise issuance limits, and eliminate the six-year pilot license duration to facilitate the scaling of already functional products in different jurisdictions.

The group asserted that these modifications could be swiftly integrated through a standalone technical adjustment without needing to revisit the EU’s broader market structure reforms. They cautioned that continued delays could weaken the euro’s standing in global capital markets as activities involving settlement and issuance transition to quicker, fully digital platforms.

The value of global tokenized real-world assets. Source: RWA.xyz

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US Advancements in Tokenization

In the US, regulatory advancements regarding tokenization have been made as the SEC clarified how tokenized securities can be issued, maintained, and settled within the current market infrastructure.

Recent steps taken include the SEC’s Trading and Markets Division giving guidance on how broker-dealers might custody tokenized stocks and bonds while adhering to existing customer protections. This indicates that blockchain-based securities will be regulated within traditional frameworks, not treated as a separate asset category.

On January 17, the NYSE announced its development of a platform to trade tokenized stocks and ETFs, aiming for 24/7 trading and rapid settlements utilizing blockchain post-trade systems.

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