German Regulator Halts Ethena’s USDe Stablecoin Sales
The German Federal financial Supervisory Authority, BaFin, has issued a cease-and-desist order to Ethena GmbH, prohibiting the public sale of its stablecoin, USDe.This decision stems from significant issues identified in Ethena’s approval process for USDe.
On March 21, 2025, BaFin announced that Ethena’s synthetic dollar, USDe, breaches the European Union’s Markets in Crypto Asset Registration (MiCAR) rules. The EU prioritizes stablecoin regulation, and non-compliance with MiCAR has become a major hurdle for issuers.
BaFin suspects Ethena gmbh of selling securities in the form of sUSDe tokens without the necessary prospectus. Consequently, the company must halt all public sales promptly.
Enforcement actions include freezing USDe reserves held by Ethena’s custodian and shutting down its website portal. new customer registrations are also suspended. However, the order onyl affects primary sales, leaving secondary sales unaffected.
Ethena Labs responded on X, stating their disappointment but commitment to exploring alternative regulatory frameworks. They clarified that the decision does not impact USDe’s listing or its backing.
USDe minting and redemption through Ethena Limited, registered in the British Virgin Islands, remain unaffected. Ethena assured users that USDe remains fully backed, and no assets have been frozen.
