Bitcoin trading subdued after chaotic debut, Coinbase faces lawsuit

Bitcoin trading subdued after chaotic debut, Coinbase faces lawsuit

NEW YORK- 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. The Securities and Exchange Commission issued Coinbase COIN.O 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. Coinbase said it would delay the launch until at least October. Shares of Coinbase last traded down 3.50% at $257.43. Trading in bitcoin was subdued after suffering its heaviest losses in 2-1/2 months on Tuesday, when it hit a near four-month high of $52,956 before ending the day down 11.1%, its largest plunge since June 2. At one point on Tuesday, the digital currency fell as much as 18.6%, wiping out more than $180 billion in market value. Bitcoin traded down 1.36% at $46,165.00. Tuesday was a historical day for bitcoin as El Salvador's decision to make the digital currency legal tender got off to a bumpy start. Technological glitches hampered its use while street protests by mistrustful citizens broke out in the Central American