- The crypto industry is in for a long ride, as the Supreme Court is expected to hear the Coinbase arbitration dispute on Tuesday.
- The hearing remains significant for the entire crypto market as well as Coinbase itself, as the result could set the tone for the industry in the long term.
It appears that crypto will be appearing before the U.S. Supreme Court, the highest tribunal in the country, for the first time.
The court specifically handles all cases and controversies arising under the Constitution or the laws of the United States, which is why the hearing holds a major significance for Coinbase, the cryptocurrency industry, and key players across the broader cryptocurrency market.
The hearing will take place on Tuesday, in the Supreme Court, as it features the customers of the crypto exchange platform. The argument from customers comes from Coinbase making plans to make sure that the two lawsuits settle for arbitration.
While crypto cases typically center on a crypto-centered issue, the one at hand focuses more on the war over the arbitration. Coinbase is arguing that after a party files for a non-frivolous appeal requesting to compel arbitration, the trial court proceedings should be halted.
However, a federal appeal court has gone against that and declines halting the lawsuits in question. Coinbase’s concern stems from whether or not a lawsuit can go to the federal court, even if the firm in question has already pushed for an appeal calling for arbitration.
Coinbase faced with two lawsuits while reports about a potential migration surfaces
Coinbase is currently faced with accusations from a customer named Abraham Bielski. Bielski argues that the crypto exchange owes him. This was after he lost $31,000, right after a scammer gained access into his account, although Bielski maintains that he gave the scammer remote access to his Coinbase account.
Similarly, the cryptocurrency exchange is battling yet another lawsuit from another one of its customers. The customers alleged that a whopping $1.2 million worth of Dogecoin (DOGE) sweepstake is under the possession of the cryptocurrency exchange. The customer further claims that the exchange failed to properly reveal that customers who entered were not required to purchase or even sell the cryptocurrency.
If the decisions from the judges at the Supreme Court favors Coinbase, it could be a necessary soothe to some of the blows that the market has dealt it in the past. The exchange is also reportedly making plans to establish itself outside of the United States, so as to evade unfriendly regulatory policies and avoid U.S. sanctions.
This comes not long after Coinbase’s CEO Brain Armstrong, reportedly spoke up about the SEC potentially placing a bank on crypto staking, a service which it offered on its platform. As the United States Securities and Exchange Commission continues to crack down on crypto, many crypto related firms like Coinbase are expected to seek safety overseas.