Catenaa, Wednesday, February 11, 2026- A coalition of tokenization and market infrastructure firms, including Securitize, warned Thursday that constraints in the EU’s Distributed Ledger Technology Pilot Regime risk pushing liquidity and trading activity to the US before long-term reforms take effect.
In a joint letter dated February 5 to the European Commission, Parliament, and Council, the group said Europe’s early lead in tokenization is threatened as US markets advance with industrial-scale tokenization, digital settlement, and fully onchain capital markets. Other signatories include 21X, Central Securities Depository, Boerse Stuttgart Group, Lise, and Axiology.
The firms urged a “quick fix” to the pilot regime, which currently limits eligible assets, caps volume at €6–€9 billion ($7.1–$10.6 billion), and restricts licenses to six years. Proposed changes include expanding asset scope, raising the volume cap to €100–€150 billion ($118–$177 billion), and removing license duration limits. They suggested adoption via a standalone technical update or smaller legislative package within six months.
The group emphasized the reforms are not a call for deregulation. Firms under the pilot already comply with investor protections, and adjustments are framed as technical updates to maintain competitiveness while the broader Market Integration and Supervision Package (MISP) reforms proceed, which are not expected to be fully implemented before 2030.
Signatories warned that without swift action, the EU risks a “success trap,” where its pilot framework fails to translate into lasting market leadership, potentially undermining the euro’s international financial position.
