Investing.com - Bitcoin turned positive Monday after falling below the psychological $10,000 level earlier as Facebook (NASDAQ:FB) attempted to ease U.S. lawmakers' fears about its upcoming crypto launch.
By 3:15 p.m. ET (20:15 GMT), Bitcoin rose 3.8% to $10,870, rebounding from a session low of $9,885.
Ahead of the hearings Tuesday and Wednesday on Capitol Hill, Facebook (NASDAQ:FB) has come under pressure from U.S. lawmakers who have questioned the social media company’s plans to launch a cryptocurrency aimed at connecting people who do not have access to traditional banking platforms.
But David Marcus, who oversees Facebook's blockchain efforts, attempted to allay fears, saying in prepared remarks that the company’s Libra project would not compete with sovereign currencies or interfere with monetary policy.
"The Libra Association, which will manage the (Libra) Reserve, has no intention of competing with any sovereign currencies or entering the monetary policy arena," Marcus said.
Some have suggested the hearings could be used as an opportunity by some lawmakers to take a wider aim at cryptocurrencies.
Rep. Maxine Waters, the California Democrat who chairs the House Financial Services Committee, recently requested that Facebook (NASDAQ:FB) stop the development of Libra and digital wallet Calibra until the Congress and regulators investigate the products.
Separately, Treasury Secretary Steve Mnuchin said today regulation in the crypto space was "indeed a national security issue”
“We will not allow digital asset service providers to operate in the shadows," Mnuchin added.
Still, the pullback in bitcoin over the weekend was considered to be “healthy,” according to bitcoin bull Thomas Lee, co-founder at Fundstrat Global Advisers.
Other cryptos were mostly higher, with XRP up 0.53% to $0.31734, Ethereum down 3.73% to $229.75 and Litecoin rising 0.68% to $91.71.