Finance, Ethena, DeFi, BaFin, Regulation Ethena’s ENA token is down by 6.5% previously 24 hours. 

The German monetary supervisory authority BaFin stated it recognized “serious deficiencies” in Ethena’s artificial USDe stablecoin.

Ethena is the yield-generating protocol. The stablecoin has a market cap of $5.4 billion.

Ethena stated on X that it’ll “continue to evaluate alternative frameworks,” after being notified that the “application under the MiCAR regulatory framework will not be approved.”

In a statement, BaFin stated that the deficiencies are associated to the “bank’s business organization and violations of MiCAR requirements, such as those regarding asset reserves and compliance with capital requirements.”

“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,” the regulator stated.

Ethena’s ENA tokenhad dropped 6.5% previously 24 hours, extending losses following the announcement, in line with CoinMarketCap knowledge.

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