"Although the Federal Reserve generally monitors developments in virtual currencies and other payments system innovations, it does not necessarily have authority to directly supervise or regulate these innovations or the entities that provide them to the market," Bernanke said in a letter.
The fresh hearings come after the Department for Homeland Security (DHS) was sent a letter from the committee that oversees the DHS in August asking for any information, plans or strategies on how it currently or plans to treat virtual currencies, including bitcoin.
The Senate Committee on Banking, Housing and Urban Affairs will also hold a bitcoin hearing on Tuesday 19 November.
(Read More: What does the FBI do with $3 million bitcoins?)
Bobby Lee, CEO of BTC China – the world's largest Bitcoin exchange by volume – said he was "cautiously optimistic" on Monday's hearing.
"I myself and many in the industry are actually in support of government regulation in this field," Lee said. "We want to work with the government proactively to recommend the right regulation approach for Bitcoin and Bitcoin companies."
"At the most basic level, government should try to clarify the necessary licenses for operating Bitcoin exchanges," he added.
Recent price surge
One potential reason behind the recent rally is the expectation of sympathetic comments towards bitcoin at Monday's hearing.
The closure of Silk Road in October, the online marketplace that allegedly allowed more than a billion dollars of illegal drugs and illicit services to be bought using the virtual currency, is cited as another major driver. The move has boosted hopes that bitcoin is fast becoming a credible currency alternative.
Lee added that this recent price rise also reflects increased awareness about the digital currency.
(Read more: Could China make or break Bitcoin?)
"There's more awareness of Bitcoin following recent press coverage," Lee said, highlighting the Bitcoin Singapore conference held last week and recent press coverage in China.