EU Tokenization Push: France FinTech Demands Bigger DLT Pilot Regime

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France FinTech and a coalition of European finance players are pushing EU lawmakers to strengthen the DLT Pilot Regime. They say the current cap is too low for tokenized markets to compete globally.

France FinTech just joined forces with a coalition of traditional finance players and tokenized asset enthusiasts. Together, they're urging EU lawmakers to beef up the DLT Pilot Regime (DLTPR) under the Market Integration and Supervision Package (MISP). And honestly? They've got a point. ### Why the Current Proposal Falls Short The European Commission wants to raise the cap on financial instruments traded on DLT infrastructure from €6 billion to €100 billion ($6.4 billion to $107 billion). Sounds like a big jump, right? But here's the thing: it's still not enough. Not when you look at the sheer size of capital markets and how fast tokenization is taking off globally. As Alejandro Martínez, Finance Director, puts it: "We're not asking for special treatment. We're asking for a framework that lets European DLT infrastructure compete on a global scale. The current cap is like putting a speed limiter on a race car." ### What the Coalition Is Really Asking For The group has three main recommendations: - **Remove the global cap entirely** – or at least set it high enough to let European DLT infrastructure reach real market size. - **Build in flexibility** – give the European Commission a mechanism to adjust thresholds as the market evolves. - **Keep the playing field level** – no differentiated thresholds that favor one business model over another. The goal? A European framework that supports tokenized financial markets for the long haul and keeps them competitive worldwide. ### The Bigger Picture Tokenization isn't a niche experiment anymore. It's reshaping how assets are issued, traded, and settled. If Europe wants a seat at the table, it needs rules that match that ambition. The coalition's message is clear: don't just tweak the pilot regime—make it a launchpad. For fintech professionals watching from the US, this is a signal. Europe is serious about building a tokenization-friendly environment. The question is whether regulators will go far enough. *The post originally appeared on France FinTech.*