European tokenization companies are calling on EU lawmakers to make swift amendments to the DLT Pilot Regime. They argue that current restrictions could drive onchain markets to the US, where tokenization is advancing rapidly. In a joint letter, several companies, including Securitize and Boerse Stuttgart Group, highlighted that asset limits and volume caps are holding back the growth of regulated tokenized products in Europe.

The push for change comes ahead of a parliamentary debate. The companies involved believe that without prompt action, the EU risks losing its competitive edge. Their letter emphasizes the need for a focused 'quick fix' that keeps investor protections intact while expanding the types of eligible assets and raising issuance caps.

The urgency of their message reflects the broader context of global tokenization efforts. The US has made significant strides in clarifying how tokenized securities can be issued and settled within existing frameworks. This regulatory clarity is crucial as it positions the US as a leader in the tokenization space.

In December 2025, the SEC outlined how broker-dealers can custody tokenized stocks and bonds, indicating that blockchain-based securities would fall under traditional regulatory guidelines. This move not only provides a clearer path for companies but also signals that the US is serious about integrating tokenization into its financial ecosystem.

Moreover, major exchanges like Nasdaq and the NYSE are actively exploring tokenization. Nasdaq has prioritized securing SEC approval for its proposal to list tokenized stocks, while the NYSE is developing a platform to trade tokenized assets, aiming for a seamless 24/7 trading experience.

The stark contrast between the US and EU regulatory environments highlights the need for timely action in Europe. As global liquidity flows towards more accommodating markets, European companies fear being left behind.

In advocating for the DLT Pilot Regime changes, the companies argue that the current six-year limit on pilot licenses is a significant barrier. They propose that adjustments could be made quickly, allowing regulated operators to scale products that are already successful in other jurisdictions.

The implications of these changes extend beyond market competitiveness. A prolonged regulatory delay could weaken the euro’s standing in global capital markets as more agile frameworks in the US attract investment and innovation.

As the EU prepares for discussions around the DLT Pilot Regime, the message from tokenization companies is clear: adapt or risk obsolescence. The urgency of their call to action serves as a reminder that in the fast-evolving world of crypto and tokenization, timely regulatory responses are essential for maintaining market relevance.