The Globe and Mail reports in its Thursday edition that volatility in Bitcoin eased on Wednesday, a day after El Salvador adopted the crypto asset as legal tender, but the threat of a U.S. lawsuit against crypto exchange Coinbase Global Inc. underscored the rocky road ahead for cryptocurrencies. A Reuters dispatch to The Globe says that the Securities and Exchange Commission issued Coinbase with a Wells notice, indicating the U.S. regulator will sue if the crypto exchange goes ahead with the launch of its interest-bearing "Lend" product for crypto assets. SEC chairman Gary Gensler has called the crypto universe a "Wild West" that is riddled with fraud and investor risk. Coinbase said it would delay the launch until at least October. Shares of Coinbase fell 2.5 per cent to $260.02 (all figures U.S.). Coinbase is not the only cryptocurrency platform to come under regulatory scrutiny. Several U.S. states have cracked down on BlockFi. Trading in Bitcoin was less hectic after the cryptocurrency suffered its heaviest losses in 2-1/2 months on Tuesday, when ended the day down 11.1 per cent. At one point on Tuesday, the digital currency fell as much as 18.6 per cent, wiping out more than $180-billion in market value.
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