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In today’s crypto news, Standard Chartered now anticipates Ether reaching $7,500 by 2025, driven by unprecedented ETF and treasury acquisitions, stablecoin expansion, and upgrades to the Ethereum network. Additionally, US banking organizations have urged the closure of a GENIUS Act “gap,” while Terraform Labs co-founder Do Kwon has confessed to charges of wire fraud and conspiracy.
Ether ascends towards new peaks as Standard Chartered raises target to $7,500
Standard Chartered has increased its Ether price forecast for 2025 to $7,500, up from a prior target of $4,000, citing an upsurge in institutional investments and the growing use of stablecoins following recent regulatory shifts in the US.
In a report provided to Cointelegraph, the bank indicated that Ether (ETH) treasury firms and exchange-traded funds (ETFs) have acquired 3.8% of all ETH in circulation since early June, nearly twice the swiftest rate of Bitcoin accumulation by equivalent entities during the 2024 US electoral cycle.
“Many factors have shifted since our previous ETH forecast update in March,” Standard Chartered noted. “The first strongly positive indicator was substantial industry involvement from the Ethereum Foundation and Etherialize, two organizations pivotal to the Ethereum ecosystem,” it added.
The British bank also highlighted plans by Vitalik Buterin to enhance Ethereum’s layer-1 capacity by 10 times, allowing for more high-value transactions to settle on-chain while routing smaller transfers to layer-2 networks such as Arbitrum and Base.
Standard Chartered pointed to the enactment of the GENIUS Act in July as another key driver. This legislation establishes a clear framework for stablecoins, paving the way for widespread acceptance. The bank observed that stablecoins constitute 40% of all blockchain fees, with more than half issued on Ethereum.
US banking organizations seek to close GENIUS Act stablecoin yield “gap”
US banking entities, spearheaded by the Bank Policy Institute (BPI), implored Congress on Tuesday to close what they described as an exception that could indirectly permit stablecoin issuers to offer yields on stablecoins via affiliates.
Recent stablecoin legislation under the GENIUS Act forbids stablecoin issuers from providing yield to tokenholders but does not specifically forbid crypto exchanges or allied businesses from doing so, allowing issuers to bypass the law by offering yields through those partners, they indicated.
The groups expressed concern that failing to close this so-called gap could hinder the flow of credit to US businesses and households, potentially causing $6.6 trillion in deposit withdrawals from the traditional banking sector.
The banking groups appear to be worried that yield-bearing stablecoins could compromise banks’ capacity to attract deposits with high-interest savings options, which are necessary to fund the loans they extend.
Offering yield is one of the most significant marketing advantages that stablecoin issuers possess to entice users. Some stablecoins, like USDC (USDC) provided by Circle, incentivize those holding it on crypto exchanges like Kraken and Coinbase.
Do Kwon admits guilt to two charges related to his involvement with Terraform
Terraform Labs co-founder Do Kwon has altered his plea from not guilty to guilty regarding two counts of wire fraud and conspiracy to defraud.
As reported on Tuesday by the US District Court in the Southern District of New York (SDNY), Kwon waived his right to a trial on two out of the nine charges filed against him by the US government and pleaded guilty. The reported plea deal with prosecutors would impose $19 million in financial sanctions.
The two felony counts could result in a maximum 25-year prison term if served consecutively; however, the deal reportedly stipulates that prosecutors will not recommend more than 12 years. Kwon’s sentencing hearing is set for December 11.
“The decision on what a fair sentence would be for you lies with me,” said Engelmayer on Tuesday, according to Inner City Press.
The Terraform co-founder was indicted in March 2023 for several charges including securities fraud, market manipulation, money laundering, and wire fraud in relation to his role at the firm. He initially appeared in the New York courtroom in January following his extradition from Montenegro, pleading not guilty to all allegations and remaining in US custody without bail.
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