In a unanimous decision, the U.S. Supreme Court ruled against Coinbase Inc. (COIN) in an arbitration dispute arising from the cryptocurrency exchange’s 2021 Dogecoin (DOGE) sweepstakes. The court clarified that when multiple contracts govern parties, a court must determine which legal agreement takes precedence.

Previously, Coinbase sought to resolve the dispute through arbitration based on user agreements mandating arbitration for all customers. However, a federal judge ruled that the sweepstakes terms, specifying California's court system as the dispute forum, took precedence over the customer agreement.

The Supreme Court upheld the lower court's authority, dismissing Coinbase's argument that ruling against them would lead to widespread legal confusion and enable parties to evade arbitration agreements.

The dispute was initiated by former Coinbase user David Suski, alleging that the exchange's "Trade Doge, Win Doge" contest misled participants into believing that a $100 purchase or sale of Dogecoin was required to win cash prizes. However, the contest's fine print revealed an alternative entry method via mail, avoiding the need for purchase in compliance with U.S. sweepstakes laws.

Despite the ruling, the market remains optimistic, demonstrating resilience and adaptability in the face of regulatory challenges.