ESMA seeks industry feedback to assess the liquidity of tokenized collateral during crises.

According to Cointelegraph, the European Securities and Markets Authority (ESMA) has published a consultation paper seeking industry feedback on the legal, liquidity, and operational risks of tokenized collateral, to assess whether clearinghouses can promptly access such assets and convert them into cash during periods of market stress. This review will help determine whether existing EU regulations are sufficient to ensure that clearinghouses can effectively dispose of tokenized collateral in the event of member defaults, and will also evaluate whether additional regulatory measures are needed.