A coalition of European financial and tokenization organizations, including Nasdaq, Boerse Stuttgart Group, Securitize, the European Ethereum Institute, and Axiology, has formally requested that EU lawmakers eliminate the proposed 100 billion euro cap on tokenized financial instruments.
In a letter dated September 7, the group argued that the current proposal is insufficient, noting that some existing European projects have already reached a scale of 350 billion euro. They proposed that if a cap must remain, it should be set at a minimum of 500 billion euro.
The organizations highlighted that the proposed limits apply to the market value of instruments admitted to DLT infrastructure. They contrasted this with the US market, where settlement platforms operate without volume caps on tokenized assets, potentially covering 150 trillion euro.
The European Commission previously proposed raising the current 6 billion euro limit to 100 billion euro as part of the Market Integration and Supervision Package. This package revises the DLT Pilot Regime, which has allowed firms to test blockchain-based trading since 2023.
Industry participants have been pressuring regulators for months. In April, 39 firms urged for faster changes and higher limits, while in February, companies including 21X warned that existing restrictions on asset limits and licenses prevent regulated onchain markets from scaling.
