The SEC is investigating Coinbase, the largest cryptocurrency exchange in the US, for allegedly listing securities on its platform.
The Supreme Court’s denial of the exchange’s plea has caused yet another major problem.
According to Bloomberg, the US Supreme Court rejected Coinbase’s request to submit its user disagreement to arbitration right now. It was said that the court’s request for the justices to intervene in the case was rejected.
The cryptocurrency exchange requested that the court suspend the case until the dispute is resolved.
It was noted that the two federal trial court justices rejected the request to transfer the matter to arbitration. Judges were tasked with deciding whether the trial could proceed while Coinbase appealed the decisions. The alternative was to hold off until the arbitration appeals were decided.
According to the newspaper, Coinbase argued before the court that this would injure them irreparably. The appellate courts disagree on this. According to the cryptocurrency exchange, six circuits demand that when an appeal is filed, the proceedings come to an end.
In one of the lawsuits filed against Coinbase, the user alleges that he lost $31,000 due to a fraudster accessing his account.
A different legal dispute involves Dogecoins, valued at $1.2 million. The contestant requested that the court not object to the intervention request. They do not, however, want the procedures to be suspended. Simply put, they reject Coinbase’s suggested solution.
The SEC had already started looking into its yield-generating products and staking programs. Recently, Coinbase released its quarterly report. This comes after the watchdog criticized the cryptocurrency exchange for listing and dealing securities.
Coinbase denied the SEC’s jurisdiction and maintained its position that the listed coins are not securities. While the SEC also said that former employees of the exchange engaged in insider trading.