#Coinbase celebrated a victory at the Supreme Court #HoaKỳ on Friday. This is not directly related to lawsuits with domestic regulators.
Coinbase Chief Legal Officer Paul Grewal wrote on Twitter.
"We are grateful to the Supreme Court for its careful review."
Grewal said:
"Another example of why I believe in America's court system. The rule of law is sometimes slow and sometimes disappointing. But it remains our last, best hope in a Democracy is not perfect."
The court sided with Coinbase in a 5-4 vote. Thereby strengthening the ability to communicate through arbitration when resolving customer disputes. Justice Brett Kavanaugh issued his opinion Friday morning.
Continuous class action lawsuits target Coinbase
The ruling comes after Abraham Bielski filed a class action lawsuit in the United States District Court for the Northern District of California. Bielski alleges Coinbase “failed to recoup funds fraudulently taken from users' accounts." The district court denied Coinbase's request for injunctive relief.
The only question before this Court is whether a district court must stay its proceedings while an interlocutory appeal of arbitrability is ongoing. The judges' answer was yes.
Disagreement from legal authorities
Justice Ketanji Brown Jackson filed a dissenting opinion and said the decision has “significant implications for federal litigation.”
“This mandatory rule on interlocutory arbitrability appeals came out of nowhere. There is no statute imposing it."
Jackson said.
Coinbase has been involved in a bitter battle with the SEC over cryptocurrency regulation. The regulator sued Coinbase in early June for allegedly violating securities laws.