Major finance groups urge EU to scrap tokenized securities cap

About 40 traditional financial institutions and digital asset industry groups, including Nasdaq, Boerse Stuttgart, the French Digital Asset Association, the European Ethereum Institute (EEI) and the Crypto Council for Innovation (CCI), submitted a letter to the European Parliament and the European Council urging them to scrap the European Union’s proposed issuance and trading cap for tokenized securities platforms or raise it sharply to at least €1.5 trillion ($1.6 trillion), CoinDesk reported. The European Commission is pursuing a revision that would raise the trading and holding limit for tokenized securities platforms to €100 billion ($107.0 billion) from €6 billion in an effort to increase participation in its distributed ledger technology (DLT) pilot regime. The industry coalition argued the cap would severely constrain market growth, noting major tokenization projects in Europe already total around €350 billion ($374.5 billion) in size.