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Writer's picturejohn kepler

Supreme Court rules in favor of Coinbase

The Supreme Court ruling is a blow to Coinbase customers represented in the Coinbase v. Bielski and Suski v. Coinbase cases.



Crypto exchange Coinbase on Friday secured a small legal victory in a case that has nothing to do with tokens nor trading.


Driving the news: The Supreme Court ruled 5-4 in favor of Coinbase over a narrow issue around the Federal Arbitration Act (FAA), a rule that for a century has protected businesses from the expense and risk of going to court to settle customer disputes.


Why it matters: The arbitration clause — found in contracts and labor agreements many Americans sign without a second thought — is considered the No.1 killer of class-action lawsuits.


What they're saying: Justice Brett Kavanaugh wrote for the narrow majority: "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."

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