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Posted on Jun 25, 2023Read on Mirror.xyz

U.S. Supreme Court Rules 5-4 in Favor of Coinbase in Arbitration Dispute

The U.S. Supreme Court ruled in favor of Coinbase in an arbitration dispute, strengthening the company's ability to take customer and employee disputes to arbitration. In a 5-4 vote, the judges ruled that the suit in federal court must be stayed while defendant Coinbase appeals and sends the case to arbitration. Upholding the ruling, Supreme Court Justice Kavanaugh said allowing the district court to move forward with the case while appeals are ongoing would reduce the benefits of arbitration. Business groups have sided with Coinbase in the case, saying it would be unnecessary cost to keep the lawsuit going. Over the past two decades, the U.S. Supreme Court has strengthened companies' powers to enforce arbitration clauses against consumers and employees. The rulings cited the Federal Arbitration Act of 1925, which says courts must enforce arbitration agreements like other contracts. Arbitration is less expensive and offers key procedural advantages to defendants.