Tokenization companies warn that restrictions on the EU's distributed ledger technology pilot program could push the market toward the US.

PANews reported on February 5th that, according to The Block, several tokenization and market infrastructure operators, including Securitize, have jointly written to EU policymakers, warning that limitations of the EU's existing distributed ledger technology pilot program could shift liquidity and market activity to the United States. Signatories include 21X, the Central Securities Depository, and the Stuttgart Exchange Group.

The letter points out that while the EU's Market Integration and Regulatory Framework establishes the right long-term framework, its implementation timeline postpones key reforms until at least 2030. Meanwhile, the narrow range of eligible assets, the excessively low transaction volume cap (currently €6-9 billion), and the six-year license period in the DLT pilot program have hampered the scaling of existing products, while the US is rapidly advancing its on-chain market infrastructure. These companies are calling on the EU to "rapidly amend" the pilot program within six months through independent technical revisions or small-scale legislation, including expanding the range of eligible assets, raising the transaction volume cap to €100-150 billion, and removing the six-year validity period for DLT market infrastructure licenses.