Latest Developments in Cryptocurrency: Regulatory Resolutions, Funding Rounds, and Political Criticism
Today in the world of cryptocurrency, Ethena Labs and Germany’s BaFin have resolved a regulatory dispute with a 42-day USDe redemption plan. Meanwhile, Polymarket is reportedly preparing for a significant funding round, and New York City Mayor Eric Adams has voiced criticism against former New York Governor Andrew Cuomo for his impact on the state’s crypto industry.
German Regulator Closes Case Against Ethena GmbH Over USDe Issuance
Ethena Labs announced on Wednesday that it has reached an agreement with the German Federal Financial Supervisory Authority, BaFin, regarding the redemption plan for USDe stablecoin holders.
The plan involves a 42-day redemption process for stablecoin holders. BaFin has set a deadline of August 6 for USDe holders to declare redemption claims directly against Ethena GmbH. This process will be supervised by a special representative appointed by BaFin.
After this deadline, Ethena GmbH will be officially wound up within Germany, the European Union, and the European Economic Area (EEA). Consequently, any claims from August 7 onward should be directed to the company’s offshore affiliate, Ethena (BVI) Ltd.
Ethena Labs stated that once the redemption plan is fully implemented, Ethena GmbH will have no outstanding issues related to its USDe operations. The company, however, has not disclosed any plans to re-enter the EU and EEA markets.
This resolution follows a four-month conflict between Ethena and the German financial regulator. On March 21, BaFin had prohibited Ethena GmbH from publicly offering its USDe stablecoin, citing violations of the EU’s Markets in Crypto-Assets Regulation (MiCA).
Polymarket to Raise $200 Million at $1 Billion Valuation
Blockchain prediction market platform Polymarket is reportedly finalizing a $200 million funding round that would value the company at approximately $1 billion, according to sources from Reuters and Bloomberg.
Peter Thiel’s Founders Fund is expected to lead this funding round, which would grant Polymarket “unicorn” status despite its ban in the United States. Previously, the platform had raised over $100 million, including an undisclosed $50 million investment earlier in 2025.
Polymarket enjoyed significant growth during the US elections last year, with trading volumes reaching $2.5 billion in November as users bet on the outcomes of presidential and Congressional elections.
The platform facilitates bets on various topics, including election outcomes and sports results, as well as unconventional scenarios like “Will the US confirm that aliens exist in 2025?” and “Will Jesus Christ return in 2025?”
New York Mayor Criticizes Former Governor Cuomo for Crypto Industry Impact
New York City Mayor Eric Adams has criticized former Governor Andrew Cuomo for his “misguided” approach to cryptocurrency regulation in the state.
During the Permissionless conference on Tuesday, Adams accused New York state of having “dismantled and destroyed” the crypto industry under Cuomo’s governance, which lasted from 2011 until his resignation in 2021.
Cuomo is currently running for mayor of New York City, with primaries scheduled this week ahead of the mayoral election on November 4.
Adams has positioned himself as a proponent of pro-crypto policies in New York, advocating for the acceptance of digital assets for city services. Upon his election, he accepted his first three paychecks in Bitcoin (BTC) and Ether (ETH).
Earlier this year, Adams’ proposal for Bitcoin-backed bonds was rejected by Comptroller Brad Lander, who deemed the plan “legally dubious and fiscally irresponsible.”
Image Credit: cointelegraph.com
