Step 1: Disease understanding.
Bovine spongiform encephalopathy (mad cow disease) is a neurodegenerative disease affecting cattle.
Step 2: Causative agent.
It is caused by prions, which are misfolded infectious proteins.
Step 3: Unique nature of prions.
Unlike viruses or bacteria, prions contain no nucleic acid and propagate by inducing misfolding of normal proteins.
Step 4: Final conclusion.
Thus, BSE is caused by prions.
Final Answer:
\[
\boxed{\text{Prions}}
\]