The U.S. Supreme Court addressed a legal dispute involving Coinbase and its users, specifically addressing an important procedural question of whether a judge or arbitrator should decide the contract governing the disputes.

According to a report from Bloomberg, this problem stems from conflicting agreements between the two parties, with one contract calling for arbitration and another supporting courtroom litigation.

Coinbase initially enforced arbitration provisions for its customers, but a complication arose with the sweepstakes agreement that directed dispute resolution to California courts. Following allegations of deceptive advertising, customers took legal action through a class action lawsuit, challenging Coinbase’s usual arbitration process.

Coinbase’s efforts to promote arbitration have faced opposition in lower courts. A federal judge in California, supported by the US Court of Appeals for the Ninth Circuit, affirmed that the lottery agreement, which favored the decision in the courtroom, should prevail. As a result, the company’s request to refer the dispute to arbitration was not approved.

Related: Coinbase trims loss, while cryptocurrency trading volumes decline in Q3

This judicial reluctance comes despite a recent Supreme Court decision, which tilted by a 5-4 vote in favor of Coinbase on a related matter. The court then ruled to uphold the company’s efforts to temporarily halt customer claims while it seeks to move disputes to arbitration.

Throughout this legal dispute, Coinbase has remained proactive. The company has expanded its services, introducing new trading options to its users. Eligible retail customers can now participate in trading cryptocurrency futures, with contracts of an accessible size, representing a fraction of the value of Bitcoin (BTC) and Ethereum (ETH).

The Supreme Court’s choice to hear this case represents a pivotal development for companies using arbitration clauses. It also highlights the court’s continued involvement in defining the differences between arbitration and legal proceedings. The ruling is likely to impact the drafting and implementation of user agreements, particularly in the ever-evolving field of cryptocurrency trading.

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