European Tokenization Firms Push for DLT Pilot Regime Overhaul
On February 6, 2024, several European tokenization and market infrastructure firms jointly addressed EU lawmakers, calling for urgent reforms to the current DLT Pilot Regime. Existing restrictions on asset scope, issuance limits, and the six-year license cap are now seen as barriers to the growth of regulated on-chain markets.
Regulatory Limits Stifle Market Growth
Companies including Securitize, 21X, and Boerse Stuttgart Group argue that while the DLT Pilot Regime was a promising initiative, it has not kept pace with the rapid evolution of tokenized markets. They stress that without timely reform, Europe risks long-term liquidity loss to more agile jurisdictions.
U.S. Advances in Tokenization Could Pull Global Liquidity Away
The U.S. is accelerating its progress in tokenized securities and near-instant settlement technology, increasing the likelihood of capital redirection. Rather than advocating for looser regulation, European firms are pushing for a technical update to expand eligible assets, increase issuance thresholds, and remove the time-bound licensing rule.
- Widen the scope of eligible assets
- Remove issuance caps
- Eliminate the six-year license expiration
Preserving Competitiveness in Global Capital Markets
Industry players emphasize that the proposed changes are not about deregulation, but about aligning the regime with market needs to maintain Europe’s position in the evolving global capital landscape.