In its upcoming term, the Supreme Court will hear a case that will affect the power of the arbitration clauses in customer agreements and, consequently, the cost of litigation for issuers.

The Case

In Coinbase, Inc. v. Bielski, Docket No. 22-105, cryptocurrency company, Coinbase, sought to compel arbitration in two separate cases (Coinbase v. Bielski and Coinbase v. Suski). The District Court of California denied these motions. Coinbase appealed; however, the District Court refused to stay the action and required the parties to proceed with litigation (staying an action means that the litigation stops while the appeal proceeds). Coinbase claims that the District Court is incorrect and litigation should not proceed while the appeal regarding arbitration is pending.

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