Coinbase Bears The Brunt Of Supreme Court’s Dogecoin Verdict, DOGE Suffers 4% Slump

In
a
recent
ruling
that
could
have
implications
for
the
crypto
industry,
the
US
Supreme
Court
unanimously
sided
against
US-based
cryptocurrency
exchange
Coinbase,
over
a
2021
Dogecoin
(DOGE)


sweepstakes

dispute. 

The


court’s
decision,
delivered
by
Justice
Ketanji
Brown
Jackson,
dismissed
Coinbase’s
argument
that
a
ruling
against
it
would
invite
legal
turmoil,
emphasizing
the
importance
of
contractual
agreements
and
the
role
of
courts
in
resolving
disputes.

Coinbase
Arguments
Dismissed

The
key
issue
was
whether
the
dispute
should
be
submitted
to
arbitration
or
litigated
in
court.


According

to
Bloomberg
Law,
the
court
emphasized
that
arbitration
requires
the
consent
of
the
parties
and
that
in
cases
involving
conflicting
contracts,
the
court
must
determine
the
parties’
intent.

Coinbase
had
contended
that
a
ruling
against
it
would
“create
chaos”
by
encouraging
parties
to
challenge
arbitration
agreements.
However,
the
court
rejected
this
concern,
stating
that
it
did
not
foresee
such
chaos
arising
from
its
decision.

Related
Reading

The
case
revolved
around
a
sweepstakes
in
which
consumers
alleged
they
were
deceived
into
paying
$100
to
participate.
The
conflict
emerged
due
to
the
presence
of
two
contracts
that
pointed
to
different
dispute


resolution
mechanisms. 

David
Suski
and
others
who
participated
sued
the
exchange
and
the
company
that
ran
the
Dogecoin
sweepstakes.

They
alleged
violations
of
California’s
false
advertising
law,
unfair
competition
law,
and
the
Consumer
Legal
Remedies
Act.

While
a
general
user
agreement
mandated
arbitration
for
all
disputes,
a
sweepstakes-specific
contract
stipulated
that
disputes
must
be
brought
before
a
California
court.

Varying
Outcomes
In
Future
Cases? 

Justice
Jackson
highlighted
the
need
for
a
court
to
determine
which
contract
should
govern
the
resolution
of
the
dispute
in
such
situations. 

However,
the
court
refrained
from
addressing
whether
the
Ninth
Circuit
Court
of
Appeals
correctly
determined
that
the
sweepstakes-specific
contract
“superseded”
the
general


user
agreement,
deeming
it
beyond
the
scope
of
the
question
presented.

Justice
Neil
Gorsuch
provided
a
concurring
opinion,
emphasizing
the
contractual
nature
of
arbitration
and
suggesting
that
different
facts
could
yield
a
different
outcome.
He
noted
that
the
enforceability
of
arbitration
depended
on
the
parties’
agreement.

Related
Reading

Coinbase’s
Chief
Legal
Officer,
Paul
Grewal,
reflected
on
the
ruling,
acknowledging
both
victories
and
defeats.
Grewal


expressed

gratitude
for
the
opportunity
to
present
their
case
to
the
court
and
appreciated
their
consideration
of
the
matter.

Double-Digit
Drop
For
COIN,
DOGE
Follows
Suit

Following
the
verdict,
Coinbase
stock,
which
trades
under
the
ticker
COIN,
took
a
significant
hit,
plunging
over
11%
to
a
valuation
of
$220.
This
decline
came
as
a
surprise
given
the
initial
expectations
of
a


potential
victory.

Prior
to
the
ruling,
Coinbase’s
stock
had
reached
a
high
of
$240
on
Wednesday.

At
the
same
time,
the
dog-themed
meme
cryptocurrency
DOGE
has
also
experienced
a
retracement
of
more
than
4%
over
the
past
24
hours,
resulting
in
a
current
trading
price
of
$0.158. 

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image
from
Shutterstock,
chart
from
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