A coalition of European tokenization companies is pressing EU policymakers to revise the DLT Pilot Regime, citing that current asset limits, volume caps, and time-limited licenses are stunting the growth of regulated on-chain markets. The group, which includes firms like Securitize and Boerse Stuttgart Group, argues that these restrictions hinder the EU's ability to compete with the U.S., where tokenization is advancing rapidly. They emphasize that without timely reforms, the EU risks losing relevance in the global market, warning that liquidity could permanently shift to the U.S. as its tokenization infrastructure matures. The proposed changes focus on a narrow technical fix that would expand eligible assets, increase issuance caps, and remove the six-year limit on pilot licenses. This approach aims to maintain investor protections while allowing regulated operators to scale their offerings. The companies believe these adjustments could be implemented quickly without disrupting broader market reforms. They argue that delays in addressing these issues could diminish the euro's competitiveness in global capital markets, especially as the U.S. accelerates its tokenization efforts. In the U.S., regulators are clarifying the framework for tokenized securities. The SEC recently outlined how broker-dealers can custody tokenized assets, signaling a move to integrate them within existing regulatory structures. The SEC's no-action letter has paved the way for new services that tokenize real-world assets. Meanwhile, major exchanges like Nasdaq and the NYSE are actively developing platforms for trading tokenized stocks, indicating a strong push toward integrating tokenization into traditional market systems.