The US Congress is to investigate the rise of cryptocurrencies with a view to imposing greater government oversight.
There is growing call from both parties in the House of Representatives and the Senate to take action on the issue.
“There’s no question about the fact that there is a need for a regulatory framework,” Republican senator Mike Rounds told Reuters news agency.
Lawmakers are concerned about the speculative trading of cryptocurrencies and want to make sure investors are protected.
Cryptocurrencies were trading strongly this morning amid news one trader had laid out $400m on a recovery, with Bitcoin having pulled back to around $11,000 from a low of below $7,000 on 6 February.