Spain Criticizes EU Digital Asset Rules as Too Restrictive
Spain’s securities regulator argues that current EU DLT laws hinder growth, citing only five registered firms across the bloc.
Only five firms are registered under the European Union’s distributed ledger technology framework. Carlos San Basilio, president of Spain’s National Securities Market Commission, stated that this low number proves the rules are too restrictive. He argued the current system prioritizes testing over actual market growth.
San Basilio made these remarks at the 9th Digital Assets Forum in Madrid. He called for the removal or significant increase of the DLT market cap ceiling. The European Commission has already proposed raising this limit to 100 billion euros. This change aims to accelerate adoption of digital assets across Europe.
Regulatory Cap Limits Market Participation
The current EU regulations set a strict limit on the total market value of tokens issued under the DLT pilot regime. San Basilio described this cap as a barrier to entry for larger institutions. He noted that only one of the five registered firms is based in Spain. This indicates marginal usage of the framework in the region.
The regulator believes the focus on testing has slowed down real-world implementation. Companies are hesitant to commit capital when the regulatory environment is uncertain. San Basilio urged policymakers to shift the focus from compliance checks to economic expansion. He emphasized the need for a scalable legal structure.
Commission Proposes Higher Market Ceiling
The European Commission recently proposed increasing the DLT market cap to 100 billion euros. This figure represents a substantial increase from previous limits. The proposal seeks to make the regime more attractive to global investors. It also aims to support fundraising activities for digital asset projects.
A higher cap would allow for greater liquidity in tokenized assets. It could also facilitate more complex decentralized finance structures. San Basilio suggested that removing the cap entirely might be the best option. He argued that artificial limits do not reflect the current state of the market.
Calls for Growth-Focused Policy Shift
Spain’s CNMV is pushing for a regulatory environment that supports innovation. San Basilio stated that the current framework does not encourage widespread adoption. He called for a balanced approach that manages risk without stifling development. The regulator wants Europe to remain competitive in the digital asset sector.
The debate highlights a divergence in regulatory philosophy within the EU. Some members favor strict controls, while others prioritize economic activity. San Basilio’s comments add pressure on Brussels to reconsider its stance. The outcome will determine the future of digital assets in Europe.
