US Congressmen have submitted a bill that would reinstate the Securities and Exchange Commission's hedge fund registration rule, reversing the effect of a court case last week.

The bill throws into turmoil the vexed issue of whether hedge fund managers, or advisers, will have to register with the SEC. Managers not meeting the criteria for an exemption have been required since February to submit detailed documents to the SEC and allow it to make regulatory visits. A US court overturned the rule last week.