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<div>German financial regulator prohibits sales of Ethena's USDe</div>

BaFin, the German financial regulatory authority, has prohibited all public sales of Ethena GmbH’s USDe (USDe) — a synthetic dollar — claiming the token violates the European Union’s MiCAR regulations and accused the firm of selling unregistered securities in the region.

BaFin ordered Ethena to freeze the reserve assets that back the token, close down the website portal, and ordered the firm to stop taking new customers, the regulator wrote in an announcement.

BaFin also appointed a representative to monitor the ongoing situation with Ethena. In a translated statement, the regulator wrote:

“The BaFin also has reasonable grounds to suspect that Ethena GmbH in Germany sells securities in the form of sUSDe tokens from Ethena OpCo. Ltd. without the required prospectus.”

“The USDe and sUSDe tokens are interconnected in such a way that investors can receive a sUSDe token in exchange for a USDe token,” the statement reads.

Despite the ban on primary sales and issuance of the token, secondary sales of the token will not be prohibited or affected, the regulator said.

In a statement on X, Ethena Labs said the backing of USDe remains unaffected, and the token can still be redeemed via Ethena BVI Limited.

Europe, Germany

Source: Ethena Labs

Ethena GmbH files for MiCA approval

Ethena submitted a request for regulatory approval under MiCA on July 29, 2024, and the firm expected to be “grandfathered” into the existing regulatory framework.

However, BaFin denied the application on March 21, citing “serious deficiencies in the business organization” and a lack of compliance with the MiCA framework.

BaFin acknowledged that there are currently around 5.4 billion Ethena tokens in circulation. However, many of these tokens were minted outside of the German jurisdiction and before MiCA took effect.

Ethena attracts investment for its products

Ethena continues to attract institutional investment for its products, risks associated with synthetic dollars notwithstanding.

Ethena raised over $100 million from investors in February 2024 to launch a new token called iUSDe geared toward institutional investors.

The firm also partnered with World Liberty Financial, a decentralized finance (DeFi) protocol started by US President Donald Trump in December 2024.

As part of the agreement, World Liberty Financial purchased 500,000 ENA tokens — the governance token of Ethena.

On Feb. 26, the MEXC crypto exchange announced a $20 million investment in Ethena’s USDe to promote stablecoin use.

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Farage criticised for failing to ‘stand up to idol’ Trump over autism claim

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Farage criticised for failing to 'stand up to idol' Trump over autism claim

Nigel Farage has refused to criticise Donald Trump for claiming pregnant women who take paracetamol risk causing autism in their child – saying “science is never settled”.

The Reform UK leader was asked by Nick Ferrari on LBC whether the US president was right to make the link, which UK health officials have discredited.

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He replied: “I have no idea … you know, we were told thalidomide was a very safe drug and it wasn’t. Who knows, Nick, I don’t know.”

Mr Farage, who is a friend of Mr Trump, said the president has a “particular thing about autism – I think because there’s been some in his family, he feels it very personally”.

Asked if he would side with medical experts who have said there is no evidence for the link, Mr Farage said: “I wouldn’t, when it comes to science, I don’t side with anybody.

“I don’t side with anybody, you know, because, because science is never settled, and we should remember that.”

Pressed again on whether it was irresponsible to make that link as US president, Mr Farage replied: “That’s an opinion he’s got. It’s not one that I necessarily share. But I mean, honestly, I’ve no idea.”

On Monday, the US president claimed there had been a “meteoric rise” in cases of autism and suggested the use of Tylenol – an American-branded version of paracetamol – during pregnancy is a potential cause.

UK health experts and officials have pushed back hard on the claim, saying there is “no evidence” for it – including Health Secretary Wes Streeting, who said that “I trust doctors over President Trump, frankly, on this”.

Speaking on ITV’s Lorraine, Mr Streeting said: “I’ve just got to be really clear about this: there is no evidence to link the use of paracetamol by pregnant women to autism in their children. None.”

The health secretary then referenced a major study in Sweden last year that involved 2.4 million children, adding it “did not uphold those claims”.

He added: “I would just say to people watching, don’t pay any attention whatsoever to what Donald Trump says about medicine.

“In fact, don’t take even take my word for it, as a politician – listen to British doctors, British scientists, the NHS.”

The health secretary also took aim at Mr Farage over his failure to criticise the US president, saying he had “no idea and no backbone”.

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He referred to a separate controversy in which Dr Aseem Malhotra, a vaccine-sceptic doctor, told the Reform Party conference that the COVID vaccine gave the royal family cancer.

“Anti-science, anti-reason, anti-NHS,” Mr Streeting said.

A spokesperson for Reform UK said: “Dr Aseem Malhotra is a guest speaker with his own opinions who has an advisory role in the US government. Reform UK does not endorse what he said but does believe in free speech.”

The Liberal Democrats also criticised Mr Farage, accusing him of wanting to impose Mr Trump’s “dangerous anti-science agenda here in the UK”.

A spokeswoman said: “Peddling this kind of nonsense is irresponsible and wrong.

“It seems Farage would rather see pregnant women suffer in pain than stand up to his idol Donald Trump.”

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Stablecoins vs. credit cards: The coming $100B US payments battle

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Stablecoins vs. credit cards: The coming 0B US payments battle

Stablecoins vs. credit cards: The coming 0B US payments battle

Can stablecoins disrupt Visa and Mastercard? Explore how blockchain payments may capture billions in fees from US credit card networks.

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Donald Trump is ‘racist, sexist and Islamophobic’, says Sadiq Khan amid feud with US president

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Donald Trump is 'racist, sexist and Islamophobic', says Sadiq Khan amid feud with US president

Sadiq Khan has branded Donald Trump “racist, sexist, misogynistic” and “Islamophobic” following the US president’s latest attack on London.

The London mayor said he was “living rent free” in Mr Trump’s head after the US president used his address to the UN General Assembly on Tuesday to criticise the UK, and London specifically.

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The president continued his long-running criticism of Mr Khan and told delegates the UK capital was being run by a “terrible mayor” who had “changed” the city.

One of his most outlandish claims was that London wanted to operate under Sharia law, Islam’s legal system – something there is no evidence for.

The president said: “I look at London, where you have a terrible mayor, terrible, terrible mayor, and it’s been changed, it’s been so changed.

“Now they want to go to Sharia law. But you are in a different country, you can’t do that.”

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Asked about the attacks made by the US president, who enjoyed his second state visit to the UK last week, Sir Sadiq said: “I think President Trump has shown he is racist, he is sexist, he is misogynistic, and he is Islamophobic.”

He went on to say the public would be “wondering what it is about this Muslim mayor who leads a liberal, multicultural, progressive, successful city that means I appear to be living rent-free inside Donald Trump’s head”.

“When people say things, when people act in a certain way, when people behave in a certain way, you’ve got to believe them,” he added.

Mr Trump has also blamed crime in London – which he said was “through the roof” – on Sir Sadiq’s leadership, and said he had also been a “disaster” on immigration.

The president’s comments, which he made on Air Force One on the way back to Washington from London after the state visit, prompted a spokesperson for the mayor to issue a staunch defence of the city.

“London is the greatest city in the world, safer than major US cities, and we’re delighted to welcome the record number of US citizens moving here,” they said.

Read more:
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PM’s ‘highly talented’ aide will stay in post despite donations row

Sir Sadiq and Mr Trump have long had a thorny relationship, dating back to the president’s call in 2015 for a total and complete shutdown” of Muslims entering the US before he assumed office.

The London mayor’s approach to Mr Trump comes in stark contrast to his Labour government colleagues, who have sought to keep the US president on side over issues including trade and tariffs.

The UK steel industry has been hit with 25% tariffs, as opposed to the 50% that has been levied on other countries.

The relationship between Mr Trump and Sir Sadiq presented the prime minister with an awkward moment during an hour-long news conference when the president visited Scotland in July.

Mr Trump called Sir Sadiq a “nasty person” who has done “a terrible job” – to which Sir Keir interjected with a laugh: “He’s a friend of mine.”

The president added: “I think he’s done a terrible job but I will certainly visit London, I hope so.”

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