The German Federal Financial Supervisory Authority, BaFin, instructed Ethena GmbH to halt selling its USDe token to local investors.
BaFin announced on November 25 that Ethena GmbH, located in Berlin, is not permitted to offer USDe in Germany since the required regulatory licenses were not obtained.
According to BaFin, the action targets USDe, described as a synthetic dollar designed for transfer, exchange, and acquisition. The regulator noted that this token was distributed via a digital platform without proper registration.
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As of November 26, 2025, the order is considered legally binding even if challenged in court.
The regulator stated that the prohibition was imposed because the sales activities breached the country’s local securities regulations.
BaFin classified the distribution of USDe as an unauthorized public offer of securities within the national market. Failure to comply with local financial laws and registration requirements led to this enforcement order.
The announcement emphasized that anyone wishing to trade or issue securities in Germany must first go through the appropriate licensing and assessment processes.
In response, Ethena maintained that operations were built to comply with varying regulatory expectations in each country. The company indicated willingness to communicate with BaFin and other supervisors to resolve these regulatory issues.
Platforms listing USDe for German users have been asked to review their offerings and ensure compliance with German law, which requires authorization for every public token sale and marketing campaign targeting people in Germany.
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