Investing.com – Bitcoin rose modestly on Monday after reporting frail performance over the weekend as momentum toward record highs was dashed by a report that the U.S. government is investigating the stablecoin giant.

Cryptocurrency prices offered some support to improved risk appetite after the Israeli attack on Iran was less severe than feared. Hong Kong’s proposal for a tax break on crypto and digital assets also slightly improved sentiment.

However, uncertainty over the US elections and interest rates continued to weigh on cryptocurrency markets, keeping most major currencies trading in a tight range.

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rose 0.9% to $67,719.50 by 01:06 ET (05:06 GMT).

Bitcoin stops below 70 thousand. dollars in connection with the Department of Justice report investigating Tether

The world’s largest cryptocurrency stalled over the weekend as its rally towards $70,000 was halted by a Wall Street Journal report that the U.S. Department of Justice was investigating Tether for potential money laundering and sanctions violations.

Tether is by far the largest issuer of stablecoins and plays a key role in global cryptocurrency trading thanks to its token, which is treated as the equivalent of the dollar in cryptocurrency markets. Any regulatory action against the company poses significant headwinds for cryptocurrency markets.

Although Tether denied any knowledge of the probe, fears of regulatory action weighed on cryptocurrency prices, pushing Bitcoin from $70,000 over the weekend.

Hong Kong proposes a tax break on cryptocurrencies

Hong Kong officials on Monday proposed regulatory guidelines for the utilize of artificial intelligence that also include potential tax breaks for digital assets.

While officials did not reveal specific details of the planned policies, they said they would be implemented by the end of the year.

Hong Kong continues to allow cryptocurrency trading even after China banned the industry in 2021. The city approved spot funds for cryptocurrency trading earlier this year, although their launch had little impact on broader cryptocurrency markets.

Today’s Cryptocurrency Price: Water retreads altcoins

Broader cryptocurrency prices were little changed on Monday, with major altcoins trading in a flat-to-low range after posting losses last week.

The world’s No. 2 cryptocurrency was unchanged at $2,482.04, while SOL rose 0.6% after overtaking its peers last week.

and dropped from 0.4% to 2%, while among meme tokens it increased by 3.9%.