The final day of MERGE Madrid 2026, held at the Palacio de Cibeles, centered on the future of digital‑asset regulation in Europe. Representatives from the European Banking Authority (EBA) and national supervisors outlined a shift in the Markets in Crypto‑Assets Regulation (MiCA) from a focus on granting licences to a new emphasis on ongoing supervision and cross‑border coordination. The conference, which brings together banks, regulators, investors and blockchain firms from Southern Europe and Latin America, provided a platform for these policy discussions alongside talks on tokenized finance and emerging blockchain applications.

Regulatory Priorities Move Toward Supervision

During a panel comparing MiCA with the United States’ GENIUS Act, Desislava Petrova, senior supervision officer at the EBA, said the EU’s next priority is “shifting from authorization to supervision.” She highlighted the need for supervisors to exchange information more efficiently as digital‑asset firms expand across borders. A separate discussion with regulators from Spain’s CNMV, Portugal’s CMVM, Italy’s Consob and Luxembourg’s CSSF echoed the sentiment, stressing the importance of a “common supervisory language” and consistent reporting standards. Luxembourg’s CSSF innovation head, Natasha Deloge, called for quicker responses to unauthorized operators targeting European customers, underscoring the regulatory challenge of cross‑border tokenized securities trading.

Tokenized Finance Gains Momentum

The conference also showcased growth in tokenized financial products. Victor Sáez of Kraken highlighted that the exchange’s tokenized equity platform, xStocks, now manages more than $1 billion in assets under management, with over 60 % of its trading volume occurring outside traditional market hours. He warned that tokenization alone does not create demand, noting that “if the underlying asset has no demand, demand is not going to show up because you tokenize it.” Hashgraph’s Europe director Matt Ward added that fragmented blockchain networks hinder secondary‑market activity, calling for better cross‑chain connectivity.

What to Watch Next

Regulators are expected to publish guidance on supervisory reporting frameworks for MiCA participants later this year, which could standardise data sharing across EU member states. Meanwhile, tokenized equity providers such as Kraken will likely seek to expand their product suites as institutional interest grows. Observers will also watch how traditional financial institutions like BNP Paribas develop tokenized fund services in Luxembourg,