Nasdaq, Börse Stuttgart Group, Axiology and a coalition of European market infrastructure firms are urging EU policymakers to dramatically raise proposed limits on tokenised securities, warning that the current plans could constrain the market just as it begins to scale.
In a new letter to members of the European Parliament and Council, the group argues that the European Commission’s proposal to increase the DLT Pilot Regime cap from €6 billion to as much as €100 billion still does not provide enough room for large-scale adoption.
Its preferred option is to remove the overall cap under the regular regime. If policymakers retain a threshold, the signatories say €1.5 trillion should be the baseline, alongside a mechanism allowing the Commission to raise it as markets develop.
The letter also warns against applying lower thresholds to DLT market infrastructures than to incumbent CSDs, arguing this could put newer providers at a competitive disadvantage.
Marius Jurgilas, CEO of Axiology, said:
“Europe has spent years building a regulated framework for tokenised capital markets, but the next test is whether those markets will be allowed to scale. A €100 billion ceiling may look generous on paper, but for market infrastructure it could quickly become a brake on investment and scale. The EU now has an opportunity to give regulated DLT markets the headroom to compete globally, while making sure new entrants are playing by the same rules as incumbent infrastructure.”
