Bitcoin rose Wednesday morning along with sharp gains in other major cryptocurrencies.
The largest digital currency by market capitalization traded 9.5 percent higher above $8,400 as of 8:12 a.m. ET, according to CoinDesk, whose bitcoin price index tracks prices from four major exchanges. The jump marked a gain of more than $2,000 in just over a day.
The gains followed a Senate Banking Committee hearing Tuesday on virtual currencies in which the chairmen of the Securities and Exchange Commission and Commodity Futures Trading Commission emphasized consumer protection without a heavy-handed ban on development of cryptocurrencies. The chairmen also said Treasury Secretary Steven Mnuchin is bringing together several federal agencies to coordinate regulation on the fast-growing industry.