Today in crypto: The US Justice Department’s investigation into Federal Reserve Chair Jerome Powell could prove to be a tailwind for Bitcoin, South Korea is reportedly lifting a nine-year ban that prevented corporations from investing in digital assets, and BitMine staked Ether crosses the 1 million milestone.
Powell investigation may introduce “risk premia” for Bitcoin
Bitcoin’s role as a non-sovereign risk asset may benefit from renewed investor focus amid a criminal investigation into US Federal Reserve Chair Jerome Powell.
Federal prosecutors opened a criminal investigation into Powell over testimony he gave to a Senate committee about renovations to the Fed’s buildings.
In a Sunday statement, Powell said the investigation is “a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President.” President Donald Trump has repeatedly attacked Powell and the Fed for refusing to grant his demands to cut interest rates.
The investigation introduces short-term political headwinds for all risk assets, particularly US equities. However, a “systemic correction” in equities may bring renewed demand for Bitcoin’s (BTC) “non-sovereign” attributes, according to analysts from crypto exchange Bitunix.
“When confidence in dollar credibility and central bank independence is questioned, decentralized assets tend to receive narrative-driven risk premia,” the analysts told Cointelegraph. “Over the long term, if political interference in monetary policy becomes structural, Bitcoin’s role as a “non-sovereign risk asset” is likely to be further reinforced.”
Bitcoin rose 0.85% over the last 24 hours, while privacy-preserving tokens Monero (XMR) rose 18% and Zcash (ZEC) rose 6.5% during the same period.
South Korea to lift ban on corporate crypto investment: Report
South Korea’s Financial Services Commission (FSC) is reportedly updating its guidelines to allow corporations to invest in digital assets after a nine-year ban.
Listed companies and professional investors will be able to invest up to 5% of their equity capital in crypto assets, reported local news outlet Seoul Economic Daily on Sunday.
According to the report, a senior FSC official familiar with the matter said the authorities will “release the final guidelines in January [or] February and allow virtual currency transactions for investment and financial purposes by legal entities.”
The move overturns a nine-year ban on corporate crypto investment dating back to 2017, when financial authorities banned institutional participation amid concerns over money laundering.
BitMine staked ETH crosses 1 million milestone
The largest Ether (ETH) treasury company, BitMine, reached a milestone on Saturday, after its total amount of staked ETH crossed 1 million.
BitMine staked 86,400 ETH, valued at about $268.7 million at the time of publication, in four separate transactions, according to data from Arkham Intelligence.
The latest batch brings BitMine’s total to 1,080,512 staked ETH, onchain analysis platform Lookonchain said.
The company will generate about $94.4 million in additional ETH every year at current staking rates, according to market analyst Nic Puckrin.