The US Supreme Court denied Coinbase’s motion to compel arbitration related to its Dogecoin (DOGE) sweepstakes on May 23.The judge ruled that “a court, not an arbitrator,” must decide whether one of Coinbase’s agreements supersedes the other.The first agreement is Coinbase’s User Agreement, which states that an arbitrator will handle disputes. The second agreement is the official sweepstake rules, which contain a forum selection clause granting California courts sole jurisdiction over sweepstakes-related controversies.The case represents a loss for Coinbase, which sought arbitration.Coinbase CLO Paul Grewal commented briefly on the outcome, writing: “some you win … some you lose,” and thanked the court for its consideration.The Supreme Court ruling affirms an earlier decision by the US Court of Appeals for the Ninth Circuit and, in turn, a decision from the Northern District of California. Both courts found that the official sweepstake rules controlled the dispute and it was not eligible for arbitration.Justice Ketanji Brown Jackson said that disputes can be arbitrated when both sides agree to arbitration but that parties may have a secondary disagreement about whether they agreed to arbitration.Jackson also commented on Coinbase’s contention that the Ninth Circuit courts improperly applied California state law in its earlier decisions. Jackson said that the Supreme Court “decline[s] to consider auxiliary questions” on the matter, which are beyond the scope of the question presented.Furthermore, Jackson denied that the decision would “invite chaos” by allowing challenges to delegation causes, stating:“Regardless, where the parties have agreed to two contracts, a court must decide which contract governs.”The broader dispute pertains to a class action lawsuit in which Coinbase and its sweepstakes partner Marden-Kane. The plaintiffs alleged that the exchange directed users to buy or sell $100 or more of DOGE to enter the sweepstakes while hiding alternative ways to participate in the offer.Plaintiffs also alleged that the companies committed violations under California’s False Advertising Law, Unfair Competition Law, and Consumer Legal Remedies Act.Before transitioning to crypto writing in 2018, Mike studied library and information sciences. Currently, he resides on Canada’s West Coast.AJ, a passionate journalist since Yemen’s 2011 Arab Spring, has honed his skills worldwide for over a decade. Specializing in financial journalism, he now focuses on crypto reporting. Catch the latest in crypto by following us on X. Stay informed on the go.The S-1 filing follows the SEC’s approval of NYSE Arca’s proposed rule change on behalf of ProShares.Rob Marrocco believes crypto ETFs beyond Bitcoin and Ethereum are unlikely without first establishing a futures market or changing regulation.Ripple said Standard Custody CEO Jack McDonald would help the firm achieve its USD-backed stablecoin plans.The examinations will determine S&C’s awareness of FTX misconduct and potential conflicts during SBF’s Robinhood shares acquisition.CryptoSlate’s latest market report dives deep into the effects corporate Bitcoin purchases have on the market.Disclaimer: Our writers’ opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.
