European Financial Groups Warn EU Caps Will Stifle Tokenized Assets

The Association for the Development of Digital Assets (ADAN) and 27 partners from across Europe have urged EU policymakers to increase transaction volume limits under the DLT Pilot Regime within the European Commission's Market Integration and Supervision Package, according to a press release issued on September 8. The DLT Pilot Regime, established to facilitate the trading and settlement of tokenized securities, offers a platform for testing blockchain technology in financial instruments.

The European Commission has proposed raising the transaction volume cap from €6 billion to €100 billion, but ADAN and its partners argue that this limit is still insufficient due to the rapid pace of global market changes. They are requesting EU policymakers to either remove the cap entirely or set it at a significantly higher level to accommodate future market growth in Europe.

The organizations, representing both traditional finance and the emerging tokenized assets sector, emphasized that the proposed increase is a positive step forward, but it is not enough to keep Europe competitive, especially when compared to the U.S. market. They stressed that the proposed €100 billion threshold, while substantial, is relatively modest in the context of global equity markets and urged EU legislators to create a regulatory framework that allows for significant scale within the DLT Pilot Regime.