EU finance groups push to remove tokenized securities cap

A coalition of European financial and tokenization groups has urged EU lawmakers to remove a proposed 100 billion euro cap ($116.3 billion) on tokenized financial instruments or raise it to at least 500 billion euro.The draft letter, dated Sept. 7 and addressed to EU Council members and the European Parliament’s Economic and Monetary Affairs Committee, said the 500 billion euro threshold should serve as a baseline if lawmakers decide to retain a cap.Among the groups signing the letter were Nasdaq, Boerse Stuttgart Group, Securitize, the European Ethereum Institute and Axiology.The letter said some existing European projects already reach 350 billion euro in scale and plan further growth, arguing that the proposed 100 billion euro ceiling would be insufficient.The groups contrasted the proposed EU limits with the US, where “a dominant settlement platform is enabled to tokenise US equities and other assets without volume caps,” which they said could cover as much as 150 trillion euro in assets.European finance groups call for removal of DLT regime cap. Source: Industry draft letterThe European Commission has proposed raising the current 6 billion euro limit to as much as 100 billion ...