WASHINGTON D.C. – In a landmark decision, the U.S. Supreme Court has granted cryptocurrency exchange Coinbase a reprieve, ruling that a lawsuit filed by one of its users cannot proceed until Coinbase defends an appeal of a lower court ruling. The 5-4 majority ruling allows Coinbase to continue its efforts to compel arbitration against the putative class action lawsuit, temporarily halting the lawsuit's progress through the federal court system. 

Coinbase initially faced a setback in the putative class action lawsuit when the U.S. District Court for the Northern District of California denied its motion to compel arbitration. The exchange subsequently lost an appeal of that ruling. The lawsuit was poised to move forward, examining the merits of the case. However, the recent Supreme Court ruling has temporarily suspended the proceedings, prompting Coinbase to continue pursuing arbitration.

Justice Ketanji Brown Jackson, supported by Justices Elena Kagan and Sonia Sotomayor (with Justice Clarence Thomas partially joining), penned the dissenting opinion. Jackson argued that allowing the case to proceed would enable a balanced assessment of all parties' interests.