European Tokenization Firms Urge EU to Modernize DLT Regulations Amid US Progress

Tokenization companies across Europe are pressing the European Union to overhaul its blockchain market regulations, warning that the current DLT Pilot Regime's restrictive framework stifles innovation. The coalition argues these limitations jeopardize Europe's ability to compete in developing large-scale tokenized financial markets, particularly as the US advances with clearer regulatory guidelines and faster settlement infrastructures.

A consortium of key industry players—including Securitize, 21X, and Boerse Stuttgart Group—has submitted a joint letter to EU policymakers ahead of a critical parliamentary debate. The letter advocates for technical refinements to the DLT Pilot Regime, emphasizing that reforms should preserve investor protections while enabling more efficient blockchain-based securities trading and settlement. Delays could prove costly, the group cautions, noting that broader EU market modernization efforts may not materialize until 2030.