Regulatory Settlement Reached

Germany's Federal Financial Supervisory Authority (BaFin) has officially closed its enforcement case against Ethena GmbH following a negotiated 42-day redemption plan for USDe stablecoin holders. The resolution marks the conclusion of a four-month standoff that began when BaFin froze the company's assets in March 2025.

Redemption Process Details

Under the agreement announced this Wednesday, USDe holders have until August 6 to submit redemption claims through Ethena's German entity. 【BaFin-appointed representatives】 will oversee the process, after which all EU/EEA operations will shift to Ethena (BVI) Ltd. The company confirmed this transition eliminates outstanding regulatory issues but remained silent on potential European market re-entry plans.

Regulatory Conflict Timeline

The dispute originated when BaFin accused Ethena of violating MiCA regulations by offering unregistered securities through its yield-bearing sUSDe tokens. ——This represents the first major enforcement action under Europe's new crypto framework——. Authorities implemented strict measures including website takedowns and service suspensions for new users.

Market Impact

Despite the German subsidiary's operational halt since April, 【5.6 billion USDe tokens】 remain in global circulation. Notably, these were predominantly issued before MiCA's implementation, highlighting the regulatory challenges facing legacy crypto products. Ethena's initial July 2024 MiCA application was rejected due to compliance failures identified during BaFin's review.

Industry Implications

The resolution sets an important precedent for stablecoin issuers navigating Europe's evolving regulatory landscape. Market observers note the 42-day wind-down period offers a potential blueprint for future enforcement actions, particularly for crypto-native firms adjusting to traditional financial oversight frameworks.