• The US Supreme Court has ruled that district courts must stay class action proceedings if interlocutory appeals are pending.
  • Coinbase has filed an appeal after its motion to compel arbitration was dismissed.
  • The ruling comes days after Coinbase was sued by the SEC for alleged securities law violations.

Coinbase scores notable victory following US Supreme Court ruling on appeal against arbitration.

On Friday, the U.S. Supreme Court ruled in favor of the cryptocurrency exchanges, saying the federal court must stay the proceedings in the pending arbitration proceedings of the defendants.

U.S. Supreme Court Upholds Coinbase

The Supreme Court ruling states that the exchange announced earlier this year thatA motion to compel arbitrationwas dismissed in the United States District Court for the Northern District of California.

Coinbase has filed an interlocutory appeal, asking the district court to stay the class action proceedings until the appeal is resolved. This was also dismissed by the United States Court of Appeals for the Ninth Circuit.

If a federal district court denies a motion to compel arbitration, the losing party has a statutory right to interlocutory appeal. The only question here is whether the district court must stay the pretrial and trial proceedings while interlocutory appeals are pending.The answer is yes: the district court must stay the proceedingssaid Supreme Court Justice Brett Kavanaugh. opinion.

Coinbase faces a class action lawsuit filed by Abraham Bielski in the United States District Court for the Northern District of California. He said that the U.S.-based cryptocurrency exchange “failure to exchange funds fraudulently withdrawn from the user’s account;

In its ruling, the Supreme Court noted that “Coinbase’s user agreement provides for dispute resolution through binding arbitration.” This informed the exchange’s move to file for arbitration, which was dismissed by a lower court.

We thank the Supreme Court for its careful consideration. Another example of why I believe in the American court system. The rule of law is sometimes slow and sometimes disappointing.But it remains our last and greatest hope in an imperfect democracy.Coinbase Chief Legal Officer Paul Grewal tweeted.

While the majority favored Coinbase, Judge Ketanji Brown Jackson dissented.Today’s Majority Invents New Suspension Rules That Permanently Favor Certain Types of Litigants: Defendants Seeking Arbitration

According to Justice Jackson, the move “Significant Implications for Federal Litigation

Coinbase was recently sued by the U.S. Securities and Exchange Commission (SEC) for allegedly violating securities laws.

By Jules

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