The Supreme Court ruled against Coinbase in a disagreement about a dogecoin giveaway from 2021. Justice Ketanji Brown Jackson said that a court, not an arbitrator, should decide which contract governs when there are contracts. The ruling stressed that arbitration depends on contract and consent, rejecting Coinbase’s claim that it would cause chaos.
Consumers alleged being duped into paying $100 to enter the sweepstakes. While a general user agreement mandated arbitration, a sweepstakes-specific contract stated disputes must be brought in California courts. The court declined to address if the appeals court correctly ruled the sweepstakes contract replaced the user agreement.
Justice Neil Gorsuch emphasized the contractual nature of arbitration, suggesting that outcomes can vary based on specific agreements between parties. The decision marks a significant development in consumer protection law, reflecting a broader legal landscape concerning arbitration agreements.
Coinbase’s head lawyer revealed that the crypto exchange is to reopen the XRP listing for residents of New York state, another encouraging sign for the cryptocurrency and its future. However, despite the continuous tosses, XRP has increased its value by 1.5% after the announcement due to a boost in investors’ confidence.
