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      European Financial Organizations Urge EU to Increase Tokenization Cap

      European financial and cryptocurrency organizations have formally requested the European Union to reconsider its proposed cap on tokenized securities platforms. In a letter addressed to the EU Council and the European Parliament, signatories including Nasdaq, Boerse Stuttgart, and the French Digital Asset Association Adan, argued that the proposed €100 billion cap is insufficient for the industry's growth. They advocate for either the removal of the cap or an increase to at least €1.5 trillion (approximately $1.74 trillion).

      The EU's distributed ledger pilot regime currently allows operators to test the trading and settlement of tokenized assets while exempting certain existing financial regulations. Following moderate participation, the European Commission suggested expanding the pilot framework and raising the cap from €6 billion to €100 billion. However, Adan contends that this increase does not align with the global market's development, as some European projects have already reached a scale of €350 billion and are poised for further growth.

      The letter also criticized the proposed differentiated cap for central securities depositories, arguing that it could disadvantage emerging service providers. The alliance highlighted that unlike Europe, a mainstream settlement platform in the United States allows for the tokenization of assets without a trading volume cap. They urged the Commission to consider a more flexible approach to the cap, allowing for adjustments as the market evolves.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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