European finance groups urge removal of DLT market cap

A coalition of European financial and tokenization groups has urged European Union lawmakers to either remove the proposed cap on tokenized financial instruments or significantly increase it to allow for industry scaling.

The groups, which include Nasdaq, Boerse Stuttgart Group, Securitize, and the European Ethereum Institute, addressed a letter to EU Council members and the European Parliament’s Economic and Monetary Affairs Committee. They are responding to the European Commission’s proposal to raise the current 6 billion euro limit to as much as 100 billion euro as part of the Market Integration and Supervision Package, which revises the Distributed Ledger Technology (DLT) Pilot Regime.

Industry representatives argue that the proposed 100 billion euro ceiling is insufficient, noting that some existing European projects already reach a scale of 350 billion euro. The coalition suggests that if a cap must be maintained, it should be set at a minimum of 500 billion euro or as high as 1.5 trillion euro to ensure the EU remains competitive with jurisdictions like the United States, where assets can be tokenized without volume caps.