EU finance groups push to remove tokenized securities cap

European finance and tokenization groups have urged EU lawmakers to remove a proposed 100 billion euro cap on tokenized financial instruments or raise it to at least 500 billion euro. The coalition of groups, including Nasdaq, Boerse Stuttgart Group, Securitize, the European Ethereum Institute, and Axiology, argues that the current cap would be insufficient for the scale of existing European projects and the potential growth of the sector.

The groups contrast the proposed EU limits with the US, where a dominant settlement platform is allowed to tokenize US equities and other assets without volume caps, potentially covering up to 150 trillion euro in assets. The European Commission has proposed raising the current 6 billion euro limit to as much as 100 billion euro as part of its Market Integration and Supervision Package, which includes revisions to the Distributed Ledger Technology (DLT) Pilot Regime.

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