Germany’s Federal Financial Supervisory Authority (BaFin) and Ethena Labs have finalized a resolution establishing a structured 42-day redemption plan for USDe stablecoin holders. This agreement concludes regulatory conflicts and establishes a critical compliance precedent for the EU’s Markets in Crypto-Assets (MiCA) regulation framework.
The dispute emerged after BaFin classified Ethena’s yield-bearing sUSDe tokens as unregistered securities under MiCA rules, leading to sanctions and asset freezes. Under supervisory oversight by BaFin, the redemption program provides a clear exit path for affected investors in the European Economic Area.
As part of the settlement, Ethena GmbH will cease European operations, with all outstanding claims transferred to its British Virgin Islands-based affiliate, Ethena (BVI) Limited. Though Ethena Labs has not announced intentions to re-enter EU/EEA markets, this resolution highlights the mandatory strict compliance with MiCA requirements.
The accord sets a benchmark for stablecoin issuers navigating EU regulatory complexities, emphasizing transparency and investor protection mechanisms under the bloc’s crypto asset regulations.