Standard Chartered Sticks to $500K Bitcoin Target as Sovereign Funds Show Interest

Government entities increased their holdings of Strategy (MSTR) as a derivative of digital gold in the first quarter.

Standard Chartered observed an interesting trend in the first quarter with government entities increasing their government entities increased their holdings of MicroStrategy (MSTR) as a derivative of digital gold.

Such conclusions were reached by the bank's experts based on reporting to the SEC.

“As more investors gain access and volatility declines, Bitcoin's share of portfolios will tend to move from its current initial level to an optimal level,” the review stated.

Form analysis for the regulator showed “disappointing” dynamics for Bitcoin ETFs and “encouraging” in relation to MicroStrategy shares.

“In some cases, the acquisition of MSTR by government organizations reflects a desire to gain access to the first cryptocurrency where local law does not allow direct ownership of the asset,” the experts clarified.

Standard Chartered recorded indirect purchases by Norway's pension fund, the Swiss National Bank, and South Korea's pension and investment authorities, who bought an average of 700 BTC each.

US state pension funds in California, New York, North Carolina, and Kentucky bought the equivalent of 1,000 BTC in aggregate.

Liechtenstein made minor purchases, while France and Saudi Arabia opened positions for the first time, albeit small, indicating growing state interest in indirect participation in Bitcoin, analysts noted.

The ETF was impacted by the Wisconsin State Board of Investments exiting a position in the exchange-traded fund from BlackRock (BLK) in the equivalent of 3400 BTC.

The sale was partially offset by an increase in the position in the product by Abu Dhabi-based quasi-sovereign Mubadala, from 4,700 BTC to 5,000 BTC equivalent, experts calculated.

Stablecoin legislation receives bipartisan support in U.S. Senate

The U.S. Senate voted in favor of advancing the bill to regulate the stablecoins GENIUS Act. This was announced by the author of the initiative, Bill Hagerty.

The document was supported by 66 senators, while 32 voted against it. This interim vote paves the way for further discussion and possible adoption of the law.

The GENIUS Act provides for mandatory collateralization of stablecoins with dollars or similar liquid assets. Issuers with a capitalization of more than $50 billion must undergo annual audits. The law also introduces separate requirements for foreign companies.

Hagerty said that the document "will bring America's payment system into the 21st century" and help maintain the leading role of the dollar. He said passage of the bill would increase demand for government bonds and support innovation in digital assets.

The vote required bipartisan support, with 16 Democrats voting in favor of the initiative, although the caucus had previously not given votes in favor of the bill.

Senator Cynthia Lummis emphasized that digital assets are the future of finance, and approval of the GENIUS Act will allow the U.S. to maintain its leadership in this area.

Lawmaker Elizabeth Warren criticized the initiative, saying the law does not address a number of important issues related to U.S. President Donald Trump's influence on the industry and the launch of new stablecoins.

According to the group Stand With Crypto, before the vote, cryptocurrency supporters sent more than 60,000 letters to senators urging them to support the bill.

SEC has accused crypto project Unicoin of a $100 million fraudulent scheme

The Securities and Exchange Commission (SEC) has charged Unicoin and three of its executives with fraudulently offering certificates for its own token and stock.

The defendants in the lawsuit were:

According to the SEC, the company made unsupported promises to "thousands of investors" that its future tokens would be backed by billions of dollars in real assets, including real estate and stakes in IPO stage companies.

According to the Commission's statement, Unicoin alleged:

The alleged fraud was promoted through a massive campaign that included advertisements at airports, on thousands of cabs in New York City, on television, and on social media. According to the Commission, it helped persuade more than 5,000 investors to buy Unicoin certificates.

The regulator accused the defendants of violating the antifraud provisions of federal law. Additional claims against the company and Konanykhin relate to provisions of the Securities Act.

The SEC is seeking reimbursement of illegally obtained income, legal fees, and civil penalties.

The lawsuit also charges Unicoin's legal counsel, Richard Devlin, with fraud. Without admitting or denying the claims, he agreed to pay a $37,500 fine.

Texas has backed the creation of a Bitcoin reserve

The Texas House of Representatives approved SB 21, a bill to create a strategic reserve for the first cryptocurrency.

105 lawmakers voted in favor of the document, with 23 against. It was sent to the governor for his signature.

The bill permits the state to invest in Bitcoin and other assets if they meet specific criteria