1 min read.Updated: 09 Sep 2021, 08:15 AM ISTLivemint
Coinbase said that the US SEC had threatened to sue the cryptocurrency exchange if it launches a program that lets users earn interest by lending crypto assets
In cryptocurrencies, Bitcoin prices today were trading over 3% lower to $45,933 as volatility eased post crashing a day after El Salvador adopted the crypto asset as legal tender though the threat of a U.S. lawsuit against crypto exchange Coinbase Global Inc underscored the rocky road ahead for cryptocurrencies.
Coinbase on Wednesday said that the US Securities and Exchange Commission had threatened to sue the cryptocurrency exchange if it launches a program that lets users earn interest by lending crypto assets. The SEC 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, reported Reuters.
Other cryptocurrencies also took a hit with the second largest crypto ether, the coin linked to ethereum blockchain, declining to $3,476 whereas dogecoin and cardano prices plunged over 4% to $0.25 and $2.41 respectively. XRP, Litecoin, Uniswap also tumbled over the last 24 hours.
Bitcoin prices plummeted from more than $52,000 per coin to $42,000, before recovering about half of that loss after El Salvador became the first country to adopt Bitcoin as legal tender on Tuesday. However, the rollout stumbled in its first hours and El Salvador President Nayib Bukele said the digital wallet used for transactions was not functioning.
Tuesday’s selloff was the most significant break in the rebound that had lifted Bitcoin almost 75% since late July. The world's largest cryptocurrency is up 59% this year (year-to-date), much lower from nearly $65,000 record high it hit in April.