According to Ethena's official statement, Germany's BaFin has notified its Frankfurt-based entity Ethena GmbH's MiCAR compliance application will not be approved, but the decision will not affect USDe's current exchange listing and its casting and redemption services through the British Virgin Islands entity Ethena (BVI) Limited. Ethena stressed that USDe is still fully supported by assets and there is no "freeze". Other regulatory paths will be evaluated in the future and relevant terms of service will be revised in the coming week to reflect current changes. This event does not affect the normal usage process of most users.