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.
How much do you know?
What type of company is Coinbase?
What government agency was involved in the lawsuit against Coinbase?
Why did the S.E.C. file a lawsuit against Coinbase?
What does the potential withdrawal of the lawsuit mean for Coinbase?
What is the estimated value of Coinbase?
Who is interested in supporting companies like Coinbase according to the text?
Coinbase is primarily involved in selling physical goods.
The S.E.C. decided to drop the lawsuit against Coinbase on Friday.
The lawsuit against Coinbase was related to tax evasion.
Coinbase is valued at $65 billion.
The lawsuit against Coinbase was due to securities fraud.
Powerful people in Washington, D.C. are interested in less strict rules for cryptocurrencies.
Coinbase allows people to buy and sell .
If the lawsuit is withdrawn, it would help Coinbase stay in business and avoid paying any money as a .
The Securities and Exchange Commission (S.E.C.) claimed that some digital currencies sold on Coinbase were not properly .
The estimated worth of Coinbase is approximately .
The potential withdrawal of the lawsuit would mean .
Some powerful people in . are interested in supporting companies like Coinbase.
