The US Supreme Court has issued a ruling that complicates Coinbase's ongoing dispute over its Dogecoin sweepstakes promotion. The Court has determined that a court, rather than arbitrators, must decide the jurisdiction of the dispute, leaving the matter solely in the hands of the judicial system.

The issue arose due to conflicting contracts between Coinbase and the affected customers. One contract stipulated that disputes should be resolved through arbitration, while the other indicated that sweepstakes-related disputes should be handled in a California court. This discrepancy has led to a complex legal battle, with both parties asserting their respective positions.

Coinbase argued that such a ruling would lead to chaos by challenging the arbitrator agreement, but the Court dismissed this concern, stating they do not foresee any significant disruptions resulting from the decision. The ruling, delivered by Justice Ketanji Brown Jackson, emphasizes that alternative facts could sway the decision either way, depending on the specific agreements made by both parties.

This is not the first time the case has been brought before the courts. In 2023, a previous ruling in the Coinbase Inc. versus Bielsk case halted trial court proceedings until the arbitration question was resolved. The current Supreme Court decision has now reopened the case, requiring a court to determine the appropriate jurisdiction.

The case originated from customer complaints alleging they were deceived into paying $100 to enter the Dogecoin sweepstakes promotion. Customers claimed that Coinbase did not adequately promote the option to enter the sweepstakes by sending a handwritten card to the promoter, which was an alternative to purchasing or selling Dogecoin.

Coinbase's loss in this case has had a significant impact on its stock valuation, with prices dropping over 3.5% in mid-day trading. Despite this setback, Coinbase continues its operations, as evidenced by the recent resumption of XRP trading on the platform, announced by Chief Legal Officer Paul Grewal on X (formerly known as Twitter). The functionality is currently active in New York after being suspended during the SEC lawsuit against the company.

Meanwhile, Ripple and the SEC may soon reach a settlement, potentially expanding XRP's availability on various exchange platforms. As for the Dogecoin sweepstakes case, its implications may have affected DOGE's market performance, with a 2.19% decrease in the last 24 hours, trading at $0.1614.

The Coinbase Dogecoin sweepstakes promotion was launched to welcome Dogecoin to the platform. It encouraged customers to participate by buying or selling Dogecoin worth a hundred dollars or more between June 03 and June 10, 2021. However, the lack of adequate promotion for the alternative entry method of sending a handwritten card has now become a point of contention in the legal dispute.

The Supreme Court's ruling has added a new layer of complexity to the case, as it shifts the focus from arbitration to the court system. The outcome of this case could have far-reaching implications for Coinbase and the cryptocurrency industry as a whole, as it highlights the need for clear and consistent contractual agreements when it comes to dispute resolution.