Justin Sullivan
The US Supreme Court ruled against Coinbase Global (NASDAQ: CURRENCY) in a case where the cryptocurrency exchange argued that disputes over a giveaway it organized should only be resolved through arbitration.
In the unanimous opinion, Judge Ketanji Brown Jackson said that a court You must decide where the dispute will be handled.
“We conclude that a court, not an arbitrator, should decide whether the parties' first agreement was superseded by the second,” he said. wrote in the opinion.
The Coinbase (COIN) case involved two contracts: the Coinbase User Agreement, which states that an arbitrator must decide all disputes under the contract, and the Official Rules for the Promotional Sweepstakes, which states that California courts “shall have jurisdiction exclusive over any dispute.” regarding promotion.”
A class action lawsuit was filed against the company, alleging that the promotion violated several California laws. Coinbase (COIN) proposed to force arbitration based on users' agreement; However, the District Court denied the motion and ruled that the forum selection clause of the Official Rules controlled the dispute. The Ninth Circuit affirmed the District Court's ruling.
Justice Neil Gorsuch wrote a concurring opinion.
Coinbase (COIN) may have another case reaching the Supreme Court. In that case, the crypto exchange sued the Securities and Exchange Commission in April 2023, seeking a response to a rulemaking petition, after the SEC sued it for operating as an unregistered broker.
Coinbase Stock (COIN) fell 5.5%n Thursday during normal trading hours on a day when bitcoin (btc-USD) fell 2.5%.
