Coinbase Prevails at Supreme Court in Arbitration Dispute

When a federal district court denies a motion to compel arbitration, the losing party has a statutory right to an interlocutory appeal. In the case of Coinbase, Inc. v. Bielski, 22-105 (June 23, 2023), the Supreme Court of the United States considered the sole question of whether the district court must stay its proceedings while the interlocutory appeal is ongoing.

The court answered in the affirmative and ruled that the district court must stay its proceedings.

Coinbase is an online platform where users can buy and sell cryptocurrencies as well as government-issued currencies. Users who create an account electronically agree to a User Agreement, which contains an arbitration clause and states that the parties agree to arbitrate any disputes arising under the agreement.