The massive rise of the crypto market, coupled with recent bankruptcies and scams, creates a growing list of legal questions. Amid these issues, the US Supreme Court will hear Tuesday’s defense of Coinbase’s efforts to arbitrate the two claims. This case will be the Supreme Court’s first crypto case.
According to Bloomberg’s report, the biggest problems stem from the SEC’s efforts to classify cryptocurrencies as investment contracts and bring them under the jurisdiction of the federal regulator. While the SEC has early victories on some issues, it is said to be met with greater skepticism by the Supreme Court, which often limits the powers of federal regulators.
“Just the tip of the iceberg in crypto-related cases”
Judges will hear Coinbase’s defense on Tuesday stemming from its efforts to arbitrate the two cases. “This is just the tip of the iceberg in crypto-related cases,” said Gerard Comizio, assistant director of the business law program at American University Washington College of Law.
“I think the current Supreme Court is willing to rein in some ways the SEC, which many in the industry find overly aggressive,” said Elliot Stein, litigation analyst at Boomberg Intelligence. made his comment.
Coinbase fraud and Dogecoin lottery lawsuit
Tuesday’s case in the Supreme Court will be a procedural battle with arbitration rather than a crypto-specific issue. Backed by business groups such as the US Chamber of Commerce, Coinbase argues that court proceedings should stop when a party files a valid appeal to force arbitration.
The company is battling claims by its client, Abraham Bielski, who said that having Coinbase stolen his account information should have paid him compensation for the $31,000 he lost from his search. In the other case, he is accused of organizing the $1.2 million Dogecoin lottery without adequate explanation.
Arbitration agreements are common in the crypto industry, as are their other businesses with large client bases.
