France FinTech Pushes to Scrap DLT Pilot Regime Caps — Here's Why It Matters

Alejandro Martínez · 2026-09-11

### The Fight for Tokenized Markets in Europe France FinTech just teamed up with a coalition of traditional finance players and tokenization advocates to push European lawmakers for something big: a revamp of the DLT Pilot Regime (DLTPR). They're not asking for small tweaks — they want the rules to match Europe's global ambitions. The DLTPR is part of the broader Market Integration and Supervision Package (MISP), and right now, the European Commission is proposing to raise the cap on financial instruments traded on DLT infrastructure from €6 billion to €100 billion. In USD, that's roughly $6.5 billion to $108 billion. Sounds like a win, right? Not so fast. ### Why the Proposed Cap Falls Short The coalition argues that even $108 billion is a drop in the bucket compared to the size of global capital markets. Tokenization is accelerating worldwide, and Europe risks falling behind if it doesn't think bigger. Here's the thing: tokenized assets aren't just a niche experiment anymore. They're becoming a real part of how markets operate. From bonds to real estate to private equity, putting assets on a blockchain can make trading faster, cheaper, and more accessible. But if Europe's infrastructure is capped at a level that's too low, it can't compete with markets in the U.S. or Asia. As one coalition member put it: *"You can't build a global hub for tokenized finance if you're stuck in a sandbox."* ### What the Coalition Is Actually Asking For The group laid out three key recommendations: - **Remove the global cap entirely** — or at least set it high enough to let European DLT infrastructure reach real market scale. - **Create a flexible adjustment mechanism** so the European Commission can update thresholds as the market evolves, instead of waiting for slow legislative cycles. - **Ensure fair rules across all infrastructures** — no special treatment that favors one model over another. These aren't radical demands. They're about giving tokenized markets room to breathe and grow. ### The Bigger Picture Europe has been trying to position itself as a leader in digital finance. The MISP package is part of that effort. But if the DLTPR revision ends up too conservative, it could send the wrong signal: that Europe is open to innovation, but only up to a point. The coalition's message is clear: if you want tokenized markets to thrive, you need to remove the training wheels. Or at least raise them high enough that they don't trip you up. So what happens next? The proposal is still being debated by co-legislators. France FinTech and its partners are hoping their voice — and the weight of the fintech ecosystem — will push the needle toward a more ambitious outcome. For anyone watching European payments and fintech news, this is one to keep an eye on. Because how Europe handles tokenization today will shape its financial markets for years to come.