EU DLT Pilot Restrictions May Drive Tokenization Firms to the US

Tokenization companies have expressed serious concerns that the current constraints imposed by the European Union's DLT pilot program could lead to a significant migration of market activities to the United States. They particularly highlighted the limitations in the program's scope, imposed volume caps, as well as the restrictive nature of time-limited licenses, which collectively hinder the development of live market products.

As the U.S. continues to progress in the realm of digital asset regulation with more favorable conditions, these constraints in the EU may inadvertently drive innovation and investment across the Atlantic. The need for a more flexible and accommodating regulatory framework has never been more urgent as tokenization firms strive to optimize their offerings in a competitive global landscape.