The US’s biggest cryptocurrency exchange, Coinbase, has achieved a significant legal victory by winning a Supreme Court ruling.
This permits the company to pause the ongoing lawsuit and move the proceedings into private arbitration.
Although this ruling may not have any direct impact on the crypto industry, it is still a significant win for any digital asset firm.
The Supreme Court voted 5 to 4 in favor of the said firm, thereby overruling a lower court’s decision regarding a customer’s lawsuit.
This lawsuit accused Coinbase of not replacing the funds that were fraudulently taken from the customer’s account.
Justice Brett Kavanaugh stated the following:
“The sole question here is whether the district court must stay its pre-trial and trial proceedings while the interlocutory appeal is ongoing. The answer is yes: the district court must stay its proceedings.”
Katherine Minarik, vice president of litigation at Coinbase, tells FOX Business.
“It makes sense that lower court litigation should be paused while an appellate court decides whether a case belongs in court at all…”
The notes continued and said the following:
“Coinbase appreciates today’s Supreme Court decision which recognizes that companies like Coinbase, as well as our customers, bear significant burdens when cases that belong in an arbitration process instead proceed in lengthy and expensive court proceedings.”
Coinbase’s chief legal officer Paul Grewal also comments on the ruling, calling it an “important win.”
Coinbase stocks gain value
Last week, Coinbase’s stock price saw a rise of almost 6%, with analysts’ average price target also slightly increasing, according to The Block Research.
Despite the US Securities and Exchange Commission’s lawsuit against the exchange operator, Coinbase traded up by 5.93% to end the week’s session at $55.59.
Since the SEC announced its suit on June 6, the stock has increased by over 7%.
In the meantime, the average price target for COIN saw a slight increase from $69.17 per share to $69.70 as of June 18, as one broker removed its sell rating coverage for the stock, leading to an elevation in the consensus coverage rating.
Check out more details about this in the original article.
