Crypto
Home›Crypto›Regulation›Crypto and market groups urge EU to raise tokenization…
Crypto and market groups urge EU to raise tokenization cap
Industry groups want the EU to scrap the proposed 100 billion euro limit or lift it to at least 1.5 trillion euros, saying some existing projects already exceed 350 billion euros.
European financial and crypto industry groups have asked EU lawmakers to remove the proposed cap on tokenized securities in the bloc's decentralized ledger pilot, or raise it substantially to avoid limiting growth. CoinDesk reports that a coalition in a letter to the European Council and European Parliament urged lawmakers to either eliminate the 100 billion euro ceiling or set it at a minimum of 1.5 trillion euros. The groups argued the current limit is too low and pointed to existing European tokenization projects that they said already reach about 350 billion euros, with plans for further expansion.
The letter also criticized a proposal to give traditional central securities depositories higher capacity limits than newer blockchain market operators. According to CoinDesk, the coalition said that approach could create uneven capacity thresholds within the pilot regime.
The EU's decentralized ledger pilot allows operators to test trading and settlement of tokenized stocks, bonds and investment funds with exemptions from some existing financial rules. The European Commission has proposed raising the current 6 billion euro ceiling to 100 billion euros, describing participation as modest, while the letter writers argued that the thresholds apply to market value of admitted securities, meaning a platform's capacity can be tied to the size of assets it supports even if trading volume is relatively low.