• The US Supreme Court ruled that the district court must stay proceedings in a class action lawsuit when interlocutory appeal is ongoing.
• Coinbase filed an appeal after its motion to compel arbitration was denied.
• The ruling comes days after Coinbase was sued by the SEC over allegations of violating securities laws.
US Supreme Court Rules In Favor Of Coinbase
The US Supreme Court has ruled in favor of cryptocurrency exchange Coinbase, granting it a key victory in its appeal against a class action lawsuit. The ruling stipulates that the district court must stay proceedings while the interlocutory appeal is ongoing.
Coinbase Motion To Compel Arbitration Denied
Coinbase had moved to file an interlocutory appeal after its “motion to compel arbitration” was denied by the US District Court for the Northern District of California. A class action lawsuit had been filed against Coinbase alleging that it failed to replace funds fraudulently taken from user accounts.
Supreme Court Decision On Interlocutory Appeal
Justice Brett Kavanaugh noted in the Supreme Court’s opinion that “when a federal district court denies a motion to compel arbitration, the losing party has a statutory right to an interlocutory appeal” and that “the district court must stay its proceedings” until such time as this appeal is resolved. This decision pertains specifically to cases where dispute resolution is provided for through binding arbitration, as stipulated in Coinbase’s user agreement.
SEC Sues Coinbase Over Securities Violations
The Supreme Court ruling comes days after Coinbase was sued by the US Securities and Exchange Commission (SEC) over allegations of violating securities laws. It remains unclear how this case will proceed and how it might impact on future rulings regarding cryptocurrencies and their regulation within the United States.
Coinbase Grateful For Careful Review By SCOTUS
Following Friday’s ruling, Coinbase expressed gratitude towards the apex court for its careful review of the case, noting that it demonstrates why they believe in American judicial system and „the rule of law.“