Tokenization Company Warning: EU Distributed Ledger Technology Pilot Project Restrictions May Push Market Toward the US

PANews February 5 News, according to The Block, several tokenization and market infrastructure operators, including Securitize, have jointly written to EU policymakers warning that the limitations of the current distributed ledger technology (DLT) pilot scheme could push liquidity and market activity to the United States. Signatories include 21X, the Central Securities Depository, Stuttgart Exchange Group, and others. The letter states that while the EU’s “Market Integration and Regulation Plan” establishes a correct long-term framework, its implementation timetable delays key reforms until at least 2030. Meanwhile, the narrow scope of qualified assets, the low trading volume cap (currently 6-9 billion euros), and the six-year license period within the DLT pilot scheme have constrained the scaling of products already launched, while the U.S. is rapidly advancing on on-chain market infrastructure. These companies are calling on the EU to make “rapid corrections” to the pilot scheme within six months through independent technical amendments or small legislative measures, including expanding the scope of qualified assets, raising the trading volume cap to 100-150 billion euros, and removing the six-year validity limit for DLT market infrastructure licenses.