8 crypto firms warn EU risks falling behind US on tokenization

Eight cryptocurrency firms, including Securitize, have warned that the EU could fall behind the U.S. in regulating tokenization, CoinDesk reported. In a joint statement, the companies argued that current regulations are hindering the EU's development amid a fierce competition to modernize capital markets using blockchain. The firms stated that while Europe deliberates, the U.S. has already taken action and is on track to control the future digital infrastructure of the global economy. They warned that the U.S. will secure a first-mover advantage before the EU's comprehensive Market Integration and Supervision Package (MISP) fully takes effect in 2030. The group stressed that global liquidity will not wait for the EU and will permanently move to U.S. markets, adding that regulation, not technology, will weaken the competitiveness of the euro. The letter included several proposals: - Abolish restrictions on tokenizable assets. - Increase the transaction volume limit for pilot projects from €6-9 billion to €100-150 billion. - Remove the six-year limit on license validity. The letter was co-authored by Securitize, 21X, Seturion of the Boerse Stuttgart Group, the Central Securities Depository (DCV), Lise, OpenBrick, STX, and Axiology.