The biggest cryptocurrency by market capitalisation was last down 7.6% at $9,936, after touching $9,926 earlier.
Economic Affairs Secretary suggested that using cryptocurrencies in payment could be outlawed but not in its entirety.
The report also suggests punishment for holding and trading in crypotocurrencies.
The plan by Facebook and its partners has generated skepticism from US lawmakers and G7 finance ministers as well as from central banks and regulators globally.
Many investors already use computer models to identify, and trade, price differences across hundreds of cryptocurrency trading exchanges.
David Marcus, who oversees Facebook's blockchain efforts, also plans to vow that Libra is not being built to compete with sovereign currencies or interfere with monetary policy.
The original cryptocurrency slumped 10.4 percent on Sunday alone, its second-biggest daily drop this year.
The timing in the shift of destination coincides with Switzerland agreeing to share data of Indians holding Swiss bank accounts with the Indian government.
The private lender also plans to scale up its pay-per-use blockchain network by issuing CPs for more corporates going ahead.
Powell said any regulatory review of the recently announced project should be 'patient and careful,' and he expects the US Financial Stability Oversight Council, a panel of financial regulators, will also review the idea.
Bitcoin touched $12,833 overnight on the Bitstamp exchange, its highest since June 27, before pulling back. It was last up 2.2 percent at $12,560.
Facebook's stock has gone up since the company announced Libra and had planned to include a wallet called Calibra. While facebook defends itself by saying that Calibra's financial data will be separate from Facebook's social data, the company has invited further calls for regulatory scrutiny.
The world's biggest cryptocurrency has surged in value since April and has risen more than 260 percent, although it remains below its all-time high of nearly $20,000 hit in December 2017.
QuadrigaCX had announced mid-January that Cotten died of complications from Crohn's disease on December 9 while volunteering at an orphanage in India.
The biggest cryptocurrency touched $11,247.63 on the Bitstamp exchange on June 23, its highest since March last year.
Facebook is reportedly planning to go international with its Libra project
As the cryptocurrency has surged in value bigger investors, from trading firms to hedge funds, have increasingly turned to exchanges regulated in traditional financial centres.
There is no real fundamental explanation as to why bitcoin, the original cryptocurrency, hit a 10-month high on Monday.
The quintessential cryptocurrency has gone through a tumultuous phase since hitting a record high of over $19,000 in December 2017, before crashing to a low of nearly $3,100, a year later, in December 2018. However, it has recovered since then, albeit slowly.
The exchange said that its Secure Asset Fund for Users will cover all losses and no user funds will be affected by the breach
On the question that if he would get involved in blockchain related projects, Buffett said there was no such plan
Other major cryptocurrencies such as ethereum and Ripple's XRP, their prices often seen as correlated to bitcoin, also moved higher.
The idea is to reward users with cryptocurrency for watching advertisements.
Drivers could also earn rewards if the car participates in a ride-sharing program, Jaguar said. The tokens earned could be used to pay for tolls, parking and charging for electric cars.
Cryptocurrencies are based on blockchain technology and there are concerns about its viability in the long-term and risk to investors, especially considering steep fluctuations in the prices.