EU Tokenization Rules Under Fire as Firms Warn of Scaling Limits in Digital Capital Markets

On 6 February 2026, a coalition of European tokenization and market infrastructure operators warned that the EU's current framework for tokenized securities is hindering the growth of regulated onchain capital markets. They argue that issuance caps, narrow asset eligibility and temporary licenses are diverting liquidity to more agile jurisdictions and could erode Europe's long-term role in digital capital markets without targeted technical adjustments.