The US Supreme Court has sided with Coinbase and granted its request to postpone customer lawsuits while it pursues appeals intended to have the issues arbitrated privately instead of in court. On Friday, five of the nine Justices supported Coinbase’s motion, reversing the decision of a lower court that had been made in the case of a user who had filed a lawsuit after a scammer had stolen money from his account.
“The sole question here is whether the district court must stay its pre-trial and trial proceedings while the interlocutory appeal is ongoing. The answer is yes:The district court must stay its proceedings,” wrote Justice Brett Kavanaugh on behalf of the court.
In response to an exchange-related putative class action complaint, Coinbase is attempting to compel arbitration.Although the decision can only be seen as a victory for Coinbase, it has no effect on the bitcoin market as a whole.However, it does represent the first time a cryptocurrency corporation has presented an argument before the US Supreme Court, which may have consequences for other claims brought against Coinbase.
Since arbitration is more expedient and affordable than court action, businesses frequently opt for it to resolve disputes.Furthermore, because there is less chance of suffering serious harm, arbitrations are frequently more comfortable to contest.Despite Friday’s decision, Coinbase may still try to compel arbitration.
“We anticipate that the Ninth Circuit here, as we anticipate in [appeals] more generally, will proceed with appropriate expedition when considering Coinbase’s interlocutory appeal from the denial of the motion to compel arbitration,” the ruling said.