The U.S. Supreme Court is addressing a legal dispute between the cryptocurrency platform Coinbase and its users. Fundamentally, the question being debated in this case is whether a judge or an arbitrator should decide where disputes will be resolved.
According to a report by Bloomberg, this issue stems from contradictory agreements between the parties; one contract advocates arbitration while the other supports litigation in a courtroom.
‘The Case Should Be Resolved in Court’
Due to a conflict between the arbitration terms in Coinbase’s user agreement and the resolution processes in California courts, a group of users filed a class-action lawsuit against the company. Coinbase wanted to respond to these lawsuits through arbitration, but the courts decided in favor of the customers, ruling that the case should be settled in court.
While these troubles continue, Coinbase has introduced futures contracts for Bitcoin and Ether for eligible retail customers. Analysts suggest that the expansion of Coinbase’s services and the introduction of new trading options might shift user attention from the platform’s legal issues to more trading activities. However, the Supreme Court’s final decision could have a significant impact on how user agreements are structured in many sectors, including digital currency trading.