EU Tokenization at a Crossroads: Inside the Push to Overhaul DLT Rules

Alejandro Martínez · 2026-09-11

France FinTech just threw its weight behind a coalition of traditional finance players and tokenized asset firms. Their message to EU lawmakers? The current DLT Pilot Regime isn't ambitious enough. And they're not mincing words. The coalition is urging co-legislators to strengthen the revision of the DLT Pilot Regime (DLTPR) as part of the broader Market Integration and Supervision Package (MISP). It's a technical mouthful, but the stakes are simple: Europe wants to lead in tokenized finance, and the current rules might hold it back. ### The 6 to 100 Billion Euro Question Here's the headline number. The European Commission proposed raising the cap on financial instruments allowed to trade on DLT infrastructure from €6 billion to €100 billion. That's roughly $6.5 billion to $108 billion at current exchange rates. Sounds like a big leap, right? The coalition says it's still not enough. Why? Because global capital markets are massive, and tokenization is accelerating worldwide. A $108 billion ceiling might sound generous until you compare it to the trillions that flow through traditional markets every day. It's like building a highway with a single lane when you know traffic is coming. ### What the Coalition Actually Wants The group isn't just complaining. They've laid out three concrete recommendations for EU lawmakers: - **Remove the global cap entirely**—or at least set it high enough that European DLT infrastructure can reach real market scale. - **Build in flexibility.** Give the European Commission a mechanism to adjust thresholds as the market evolves. No one wants to revisit legislation every two years because the numbers are outdated. - **Keep the playing field level.** No differentiated thresholds that favor one type of infrastructure over another. Fair rules for everyone. > "The goal is simple: a European framework that can sustainably support tokenized financial markets and keep them competitive on a global scale." That last point matters more than it might seem. If regulators create different rules for different platforms, they risk picking winners and losers. And that's a surefire way to stifle innovation before it gets off the ground. ### Why This Matters Beyond Europe You might be thinking: this is EU policy, why should I care? Fair question. But here's the thing—tokenization isn't a regional trend. It's a global shift in how financial assets are issued, traded, and settled. When Europe sets the rules, it sends signals to markets everywhere. If the EU gets this right, it could become a magnet for tokenized asset innovation. If it gets it wrong, that innovation migrates to jurisdictions with clearer, more flexible frameworks. ### The Bottom Line France FinTech and its allies aren't asking for the moon. They're asking for rules that match the scale of the opportunity. The current proposal—raising the cap from $6.5 billion to $108 billion—is a step in the right direction. But without a clear path to adjust those limits and a commitment to fair competition, Europe risks falling short of its own ambitions. The ball is now in the co-legislators' court. Will they seize the moment, or will they settle for half-measures? For anyone watching European payments and fintech news, this is one to keep an eye on.