- Customer-employee disputes will now go to arbitration
- Judges voted 5 in favor and 4 against
- Businesses also backed the exchange
Cryptocurrency exchange Coinbase beats the Securities and Exchange Commission in the United States Supreme Court. The judge sided with the company, deciding a case that promotes companies’ ability to resolve disputes with customers and employees through arbitration. Instead of proceeding in federal courts, the parties will be required to go through arbitration, which is the resolution of the dispute by a neutral third party.
On a 5-to-4 vote, the judges decided that lawsuits that were filed in federal court should be stayed until the defendant files an appeal, which would send the case to arbitration.
Business organizations supported Coinbase in the decision, arguing that continuing the court proceedings would result in unnecessary costs. Consumer advocates said judges should have the right to determine which lawsuits should be heard on appeal, just as they are in other branches of the law.
Consumer advocates have said that judges should have the right to determine which lawsuits should be heard on appeal.