US Supreme Court docket arms Coinbase key win

• The US Supreme Court docket dominated that the district court docket should keep proceedings in a category motion lawsuit when interlocutory attraction is ongoing.
• Coinbase filed an attraction after its movement to compel arbitration was denied.
• The ruling comes days after Coinbase was sued by the SEC over allegations of violating securities legal guidelines.

Coinbase has scored a notable victory after the US Supreme court docket’s ruling on its attraction over arbitration.

On Friday, the apex US court docket dominated in favour of the crypto alternate’s argument, stating {that a} federal court docket should keep proceedings in a lawsuit the place a defendant’s attraction for arbitration is ongoing.

US Supreme Court docket sides with Coinbase

The Supreme Court docket’s verdict comes after the alternate filed an attraction earlier this yr after its “movement to compel arbitration” was denied the US District Court docket for the Northern District of California.

Coinbase moved to file an interlocutory attraction and sought to have the District Court docket keep proceedings of a category motion lawsuit pending the decision of its attraction. That too had been denied on the US Court docket of Appeals for the Ninth Circuit.

“When a federal district court docket denies a movement to compel arbitration, the dropping get together has a statutory proper to an interlocutory attraction. The only query right here is whether or not the district court docket should keep its pre-trial and trial proceedings whereas the interlocutory attraction is ongoing. The reply is sure: The district court docket should keep its proceedings,” Justice Brett Kavanaugh famous within the Supreme Court docket’s opinion.

Coinbase is dealing with a category motion lawsuit filed by Abraham Bielski on the US District Court docket for the Northern District of California, during which he alleges that the US-based cryptocurrency alternate “failed to interchange funds fraudulently taken from the customers’ accounts.”

The Supreme Court docket notes in its ruling that “Coinbase’s Person Settlement gives for dispute decision by means of binding arbitration.” That is what knowledgeable the alternate’s transfer to file for arbitration – which the decrease courts denied.

“We’re grateful to the Supreme Court docket for its cautious evaluation. One other instance of why I consider within the American court docket system. The rule of legislation is someday gradual, and at instances disappointing. However it stays our final, finest hope in an imperfect democracy,” Coinbase Chief Authorized Officer Paul Grewal tweeted.

Whereas the bulk was in favour of Coinbase, Justice Ketanji Brown Jackson dissented, noting that “at this time’s majority invents a brand new keep rule perpetually favoring one class of litigants—defendants in search of arbitration.” 

In response to Justice Jackson, the transfer might have “vital implications for federal litigation.”

Coinbase was lately sued by the US Securities and Trade Fee (SEC) over allegations of violating securities legal guidelines.