Key Takeaways:
- Ethena Labs resolved its months-long regulatory dispute with BaFin, allowing USDe holders to redeem tokens by August 6.
- Polymarket is set to reach a $1 billion valuation amid explosive user growth.
- Eric Adams blamed Andrew Cuomo for slowing down crypto innovation in New York, contrasting with his pro-crypto policies.
The crypto market saw major regulatory and investment developments today as Ethena Labs reached a resolution with Germany’s BaFin over its USDe stablecoin, Polymarket eyes a billion-dollar valuation, and New York City Mayor Eric Adams slammed Andrew Cuomo’s past crypto policies. Here’s what you need to know.
Ethena Labs and BaFin Finalize USDe Redemption Plan
After a prolonged regulatory standoff, Germany’s financial watchdog BaFin and Ethena GmbH have agreed on a 42-day redemption plan for USDe holders. The stablecoin’s redemption period will end on August 6, after which all claims must go through Ethena’s offshore arm in the British Virgin Islands.
BaFin’s action dates back to March 21, when it barred Ethena from publicly offering USDe in the EU, citing MiCA regulation violations. Ethena Labs confirmed that once this redemption process is complete, Ethena GmbH will no longer face regulatory issues within the EU or EEA.
Polymarket Nears $200M Raise at $1 Billion Valuation
Polymarket, the popular blockchain-based prediction market, is reportedly closing a $200 million funding round led by Peter Thiel’s Founders Fund. If completed, the raise will push the company’s valuation to $1 billion—earning it unicorn status.
Despite being banned in the U.S., Polymarket has seen enormous trading volume, especially during the 2024 U.S. elections. Traders bet over $2.5 billion in November alone, covering everything from political races to quirky hypotheticals like alien discoveries and religious prophecies.
Also Read: CME XRP Futures Hit $542M in Volume—Analysts Say Spot ETF May Be Next
NYC Mayor Blames Cuomo for Stifling Crypto Innovation
At the Permissionless conference, New York City Mayor Eric Adams accused former Governor Andrew Cuomo of stifling crypto growth with “misguided” regulation during his tenure. Adams claims Cuomo “dismantled” the state’s budding crypto industry and hindered innovation.
With Cuomo now vying for NYC mayor in upcoming primaries, Adams has doubled down on his pro-crypto stance—emphasizing blockchain adoption in city services and recalling that he took his first three paychecks in Bitcoin and Ether. Despite pushback on initiatives like Bitcoin-backed bonds, Adams continues to champion a crypto-forward agenda.
Final Thoughts
Today’s crypto headlines show both the ongoing regulatory challenges and the remarkable investment momentum within the space. As companies like Polymarket scale and regulators like BaFin enforce MiCA rules, the tension between compliance and innovation remains a defining narrative for 2025.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
