### European digital-asset groups urge higher DLTPR transaction caps

European digital-asset groups urge higher DLTPR transaction caps

European financial and tokenized-asset organizations are pressing EU policymakers to raise transaction limits under the DLT Pilot Regime, arguing current ceilings will constrain growth in tokenized markets.

The Association for the Development of Digital Assets (ADAN) and 27 partners said in a Sept. 8 press release that the European Commission’s Market Integration and Supervision Package (MISP) should authorize higher transaction volumes within the DLT Pilot Regime (DLTPR).

Higher EU ceiling still too low, groups say

The Commission has proposed lifting the cap from 6 billion euros (about $7 billion) to 100 billion euros (about $116 billion). ADAN and its partners called that increase insufficient given changes in global markets.

They urged EU policymakers to remove the cap under the standard plan. If quantitative thresholds remain, they asked that limits be set high enough to leave room for market growth in Europe.

Push for flexible adjustments and no differentiated thresholds

The organizations want a flexible adjustment mechanism that allows increases over time. They also asked for no differentiated threshold mechanisms, according to the press release.

DLTPR framework ties to MiFID II tokenized instruments

The DLTPR sets the legal framework for trading and settlement of crypto-assets that qualify as financial instruments under MiFID II. It is designed to support new market infrastructure types, including distributed ledger technology (DLT) multilateral trading facilities, DLT settlement systems, and DLT trading and settlement systems.

Thresholds tied to market capitalization, not trading volume

ADAN and partners said the thresholds are based on market capitalization rather than trading volume. They argued that 100 billion euros is modest in the context of global equity markets and could restrict European projects.

In their letter, they cited that some existing European projects already hold a volume reaching 350 billion euros (about $406 billion) and plan further growth. They said the current approach would limit those efforts.

Why it matters

The DLTPR is the EU’s main testing framework for tokenized financial instruments using DLT. Caps on transaction volumes will determine how much activity can scale inside the regime, shaping whether Europe can expand tokenized markets on a comparable footing with other regions.