Coinbase Emerges Victorious in the Supreme Court
In a significant ruling, the U.S. Supreme Court sided with popular cryptocurrency exchange Coinbase (NASDAQ: COIN), bolstering the rights of businesses to refer customer and employee disputes to arbitration, according to a report from Bloomberg on Friday.
A Positive Impact on Coinbase's Market Performance
As a result of this ruling, Coinbase's shares saw a surge of over 5%, with shares trading at $60.52 each at the time of the report. This uptick builds upon the impressive 60% year-to-date gains the cryptocurrency company has already achieved.
Businesses Rally Behind Coinbase’s Stand
The Supreme Court decision was split with a narrow 5-4 vote. The justices decided that federal court lawsuits need to be paused while a defendant advances an appeal intending to move the case to arbitration. Coinbase was backed by numerous business groups during the case, who voiced their opinion that allowing litigation to proceed would incur unnecessary costs.
Consumer Advocates Champion Judicial Discretion
While the ruling was celebrated by many businesses, consumer advocates argued the opposite viewpoint. They believe judges should retain the discretion to determine which claims should proceed during an appeal, mirroring the practice in other legal areas.