Coinbase is a big company that lets people buy and sell cryptocurrencies, which are digital money. On Friday, Coinbase said that the Securities and Exchange Commission (S.E.C.), a government agency, would stop its lawsuit against them. This is good news for Coinbase and the whole cryptocurrency market.
In a post on its website, Coinbase explained that they made a deal with the S.E.C. to withdraw the lawsuit. This means they will not have to pay any money as a penalty. If the S.E.C. agrees, it will be a big change from their usual actions. The lawsuit started because the S.E.C. claimed that some digital currencies sold on Coinbase were not properly registered. They said this could put customers at risk.
If the lawsuit gets dropped, it would help Coinbase stay in business. The company is worth about $65 billion. This also shows that some powerful people in Washington, D.C. are interested in supporting companies like Coinbase. They want less strict rules for cryptocurrencies.
Vocabulary List:
- Cryptocurrency /ˌkrɪp.toʊˈkɜːr.ən.si/ (noun): A digital or virtual currency that uses cryptography for security.
- Securities /sɪˈkjʊr.ɪ.tiz/ (noun): Financial instruments representing an ownership position in a company or a debt obligation.
- Lawsuit /ˈlɔː.suːt/ (noun): A claim or dispute brought to a court for resolution.
- Regulated /ˈrɛɡ.jʊ.leɪ.tɪd/ (adjective): Controlled or governed by laws or rules.
- Withdraw /wɪðˈdrɔː/ (verb): To remove or take back.
- Penalty /ˈpɛn.əl.ti/ (noun): A punishment imposed for breaking a law or rule.
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