Stay ahead in the fast-paced world of digital assets. This daily digest provides the latest Crypto News, offering crucial insights into the trends and events shaping Bitcoin, Ethereum, DeFi, NFTs, Web3, and global crypto regulation. Today’s top stories reveal a bullish outlook for Ether, significant regulatory debates around stablecoins, and a major development in the legal saga of Terraform Labs co-founder Do Kwon.
Standard Chartered’s Bold Ether Price Forecast
Standard Chartered, a prominent British banking group, recently increased its Ether (ETH) price forecast for 2025. The bank now predicts Ether could reach an impressive $7,500, a substantial rise from its earlier $4,000 target. This revised projection highlights a growing institutional interest and accelerated adoption of stablecoins.
According to a report shared with StockPil, Ether treasury companies and exchange-traded funds (ETFs) have acquired a significant portion of all ETH in circulation. Since early June, these entities have accumulated 3.8% of the total supply. This rate nearly doubles the fastest Bitcoin accumulation seen by similar entities during the 2024 U.S. election cycle. Furthermore, this trend signals robust demand from large-scale investors.
Standard Chartered noted substantial shifts since their last ETH forecast update in March. They cited significant industry engagement from key organizations like the Ethereum Foundation and Etherialize. These groups are pivotal in driving the Ethereum ecosystem forward. Moreover, Vitalik Buterin’s plans to boost Ethereum’s layer-1 throughput by tenfold also contribute to this optimistic outlook. This upgrade aims to enable more high-value transactions directly on-chain, while delegating smaller transfers to efficient layer-2 networks such as Arbitrum and Base. This development is key for future scalability.
The bank also highlighted the passage of the GENIUS Act in July as another major catalyst. This legislation provides a clear framework for stablecoins, paving the way for broader mainstream adoption. Stablecoins currently account for 40% of all blockchain fees. Significantly, over half of these stablecoins are issued on the Ethereum network, underscoring its central role in the stablecoin economy.
US Banking Groups Seek Stablecoin Regulation Clarity
In a related development, major U.S. banking groups have expressed concerns regarding the GENIUS Act. Led by the Bank Policy Institute (BPI), these groups urged Congress on Tuesday to address what they perceive as a “loophole.” This loophole, they claim, could indirectly allow stablecoin issuers to offer yields through affiliated entities.
New stablecoin laws under the GENIUS Act explicitly prohibit stablecoin issuers from directly offering yield to tokenholders. However, banking groups argue that the law does not explicitly ban crypto exchanges or affiliated businesses from doing so. This omission, they contend, enables issuers to circumvent the law by offering yields through their partners. Consequently, this could create an uneven playing field.
The banking groups voiced fears that a failure to close this so-called loophole could disrupt the flow of credit to U.S. businesses and families. They warned of potential deposit outflows from the traditional banking system, possibly totaling $6.6 trillion. Therefore, they advocate for stricter enforcement.
These groups appear concerned that yield-bearing stablecoins might undermine banks’ ability to attract deposits. Banks rely on these deposits to back the loans they make. Offering yield remains one of the biggest marketing attractions for stablecoin issuers. For example, some stablecoins like USDC, offered by Circle, reward users holding them on crypto exchanges such as Kraken and Coinbase. This competition for deposits is a significant point of contention for traditional financial institutions.
Do Kwon Pleads Guilty in Terraform Labs Case
In a significant legal turn, Terraform Labs co-founder Do Kwon has changed his plea from not guilty to guilty on two charges. These charges include wire fraud and conspiracy to defraud. Reporting from the U.S. District Court in the Southern District of New York (SDNY) on Tuesday confirmed Kwon waived his right to a trial on two of the nine charges he faces from the U.S. government.
The reported plea agreement with prosecutors would impose $19 million in financial penalties. While the two felony charges could carry up to a 25-year prison sentence if served consecutively, the agreement reportedly stipulates that prosecutors will not recommend more than 12 years. This marks a major development in the ongoing legal proceedings.
Kwon’s sentencing hearing is scheduled for December 11. Judge Jed Rakoff, presiding over the case, stated, “It will be up to me to decide what a just sentence for you would be,” according to Inner City Press. Authorities indicted the Terraform co-founder in March 2023 on various charges. These included securities fraud, market manipulation, money laundering, and wire fraud, all related to his role at the company.
Kwon first appeared in the New York courtroom in January following his extradition from Montenegro. At that time, he pleaded not guilty to all charges and remained in U.S. custody without bail. His guilty plea now brings a degree of closure to a high-profile case that significantly impacted the broader crypto market.
Looking Ahead in the Crypto Landscape
Today’s Crypto News highlights the dynamic nature of the digital asset space. From optimistic price forecasts for Ether driven by institutional adoption and technological advancements, to ongoing debates over stablecoin regulation, and crucial legal outcomes, the crypto market continues to evolve rapidly. Investors and enthusiasts alike must stay informed to navigate these complex developments. These events collectively shape the future trajectory of cryptocurrencies and blockchain technology.
The confluence of institutional interest, regulatory scrutiny, and legal accountability underscores the maturation of the crypto industry. As the market continues its journey, these daily updates provide essential context for understanding its direction. We will continue to monitor these stories and provide timely, accurate information.
Frequently Asked Questions (FAQs)
Q1: What is Standard Chartered’s new Ether price target for 2025?
Standard Chartered has raised its Ether (ETH) price forecast for 2025 to $7,500, up from a previous target of $4,000. This increase is primarily driven by significant institutional buying and the accelerating adoption of stablecoins.
Q2: Why are U.S. banking groups concerned about the GENIUS Act’s stablecoin provisions?
U.S. banking groups, led by the Bank Policy Institute (BPI), are concerned about a perceived loophole in the GENIUS Act. They argue this loophole could allow stablecoin issuers to indirectly offer yields through affiliated entities, potentially disrupting traditional banking deposits and credit flows.
Q3: What charges did Terraform Labs co-founder Do Kwon plead guilty to?
Do Kwon pleaded guilty to two charges: wire fraud and conspiracy to defraud. This plea agreement was reported on Tuesday from the U.S. District Court in the Southern District of New York (SDNY).
Q4: How might stablecoin regulation impact the traditional banking system?
Banking groups fear that yield-bearing stablecoins, if not properly regulated, could draw significant deposits away from traditional banks. This could potentially undermine banks’ ability to attract funds for loans and disrupt the flow of credit to businesses and families.
Q5: What factors are driving Standard Chartered’s optimistic Ether price forecast?
Key factors include a surge in institutional buying of ETH by treasury companies and ETFs, the accelerating adoption of stablecoins (many on Ethereum), significant industry engagement from Ethereum ecosystem organizations, and planned network upgrades by Vitalik Buterin to boost layer-1 throughput.
Q6: What are the potential consequences of Do Kwon’s guilty plea?
The plea agreement reportedly includes $19 million in financial penalties. While the two felony charges could carry up to a 25-year prison sentence, prosecutors are reportedly not recommending more than 12 years. The final sentence will be determined by the judge on December 11.
