German Regulator Identifies ‘Deficiencies’ in Ethena’s USDe Stablecoin

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🚨👀 Stablecoin Shocker: German Regulator Calls Out Ethena’s USDe

German Regulator Identifies ‘Deficiencies’ in Ethena’s USDe Stablecoin

What to know:

  • Germany’s financial regulator, BaFin, said that the deficiencies are related to the bank’s business organization and violations of MiCA requirements.
  • Ethena said it will seek alternative regulatory frameworks.
  • ENA is down by 6.5% in the past 24 hours.

Oh dear, it looks like Ethena’s synthetic USDe stablecoin has been given a good old-fashioned ticking off by Germany’s financial regulator, BaFin. 🙄

Ethena, the yield-generating protocol that’s been making waves in the crypto world, has a market cap of $5.4 billion. But it seems that’s not enough to save it from BaFin’s wrath.

Ethena said on X that it will “continue to evaluate alternative frameworks,” after being notified that the “application under the MiCAR regulatory framework will not be approved.” Because, you know, who needs rules and regulations, right? 😒

According to BaFin, the deficiencies are related to the “bank’s business organization and violations of MiCAR requirements, such as those regarding asset reserves and compliance with capital requirements.” In other words, Ethena’s been a bit naughty. 😳

And if that wasn’t enough, BaFin also has reasonable grounds to suspect that Ethena GmbH is publicly offering securities in Germany in the form of ‘sUSDe’ tokens of Ethena OpCo. Ltd. without the required securities prospectus. Because, you know, who needs a prospectus when you’ve got a fancy stablecoin, right? 🤑

Ethena’s ENA token had dropped 6.5% in the past 24 hours, extending losses following the announcement, according to CoinMarketCap data. Ah, the joys of being a crypto investor… 🤯

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2025-03-21 18:56