Bitcoin was trading more than 1% higher Wednesday morning.
The price was around $56,800 per coin, while rivals Ethereum and Dogecoin were trading around $4,300 and 22 cents per coin, respectively, according to Coindesk.
The Indian government reportedly has plans for a new bill that would bar most private cryptocurrencies. The news triggered heavy selling in the country's digital currency markets, according to Reuters.
The government will allow only certain cryptocurrencies to promote the underlying technology and its uses, according to a legislative agenda released late on Tuesday for the winter session of Parliament set to start this month.
If the bill were to pass, it would effectively ban citizens in India from transacting in most cryptocurrencies.
In other cryptocurrency news, the head of the U.S. Senate banking committee sent letters on Tuesday to stablecoin issuers and exchanges seeking information on how companies are protecting consumers and investors amid the risks highlighted in the recent report by the President’s Working Group on Financial Markets.
Sen. Sherrod Brown, D-Ohio, said consumers and investors may not understand how stablecoins work and the risks involved, according to Coindesk.
"I have significant concerns with the non-standardized terms applicable to redemption of particular stablecoins, how those terms differ from traditional assets, and how those terms may not be consistent across digital asset trading platforms," Brown wrote in a letter to Circle, the payment services company that operates stablecoin USD coin (USDC).
Circle CEO Jeremy Allaire tweeted that he was looking forward to "responding and working with you to ensure consumers are appropriately protected."
The President’s Working Group compiled the report, along with the FDIC (Federal Deposit Insurance Corp.) and the Office of the Comptroller of the Currency.
The report is considered the first step toward establishing federal-level regulatory oversight of the stablecoin sector in the U.S.
Stablecoins are cryptocurrencies typically tethered 1:1 to the value of other assets like the U.S. dollar, and issuers maintain the fixed value of these currencies by backing them with reserves that match the value of the coins in circulation.