This provision states that users waive the right to participate in class action lawsuits or representative proceedings against Coinbase, limiting claims to individual capacity only.
This analysis describes what Coinbase's agreement states, permits, or reserves. It does not constitute a legal determination about enforceability. Regulatory applicability and practical outcomes may vary by jurisdiction, enforcement context, and individual circumstances. Read our methodology
Under this clause, users are contractually precluded from joining or initiating class action litigation against Coinbase, which affects the practical feasibility of pursuing smaller-value claims that may only be economical in aggregate.
Interpretive note: Enforceability of class action waivers varies by jurisdiction; some states impose limitations on waivers of public injunctive relief claims.
The updated terms establish a new arrangement for USDC designated as 'Secured USDC' in connection with the Coinbase One Card. Under the revised language, if you designate USDC in your wallet as Secured USDC, you agree that Coinbase may transfer that amount to a third party designated as the secured party, and you will be restricted from withdrawing or transferring those funds. Additionally, the secured party's instructions to Coinbase regarding those assets take priority over any conflicting instructions you provide. The agreement states that you consent to all such permitted transfers. This arrangement operates independently of amounts owed to Coinbase, meaning Secured USDC will not be debited to satisfy debts you owe to Coinbase.
View change record →The updated terms eliminate language that previously allowed Coinbase to restrict your withdrawals if you designated USDC as Secured USDC and to comply with third-party secured party instructions without your consent. Under the revised agreement, Coinbase will not transfer, loan, or otherwise handle your Supported Digital Assets except as required by law or as you instruct. This means the One Card Secured USDC mechanism is no longer integrated into the core asset protection clause, and users no longer face withdrawal restrictions or loss of instruction authority tied to that designation. If you currently hold Secured USDC under a separate One Card cardholder agreement, that agreement remains in effect but is no longer cross-referenced in the main User Agreement's asset protection section.
View change record →The updated terms establish a new exception to the prior prohibition on transferring user digital assets. Previously, Coinbase stated it would not transfer assets except as required by law or per user instruction. The revised language now permits Coinbase to transfer USDC designated as 'Secured USDC' to third parties pursuant to a Coinbase One Card cardholder agreement. Users who elect to use this feature agree they will be restricted from withdrawing or transferring the secured portion, and they consent to Coinbase following instructions from a designated secured party without further user approval, even if those instructions conflict with the user's own orders to Coinbase. The full terms of this arrangement are stated to be in Appendix 4, which is not included in this summary.
View change record →The agreement requires that claims be brought individually rather than as part of a class or representative action. This provision applies in conjunction with the mandatory arbitration clause.
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You and Teachable agree to resolve any disputes through final and binding arbitration, except as set forth under Exceptions to Agreement to Arbitrate below. You also agree that disputes will only be resolved on an individual basis and not as a class, consolidated, or representative action.
Any dispute arising from or relating to the subject matter of these Terms shall be finally settled by arbitration in San Francisco County, California, in accordance with the Streamlined Arbitration Rules and Procedures of Judicial Arbitration and Mediation Services, Inc. ("JAMS") then in effect, by ...
WHERE PERMITTED UNDER THE APPLICABLE LAW, YOU AND NETFLIX AGREE THAT EACH MAY BRING CLAIMS AGAINST THE OTHER ONLY IN YOUR OR ITS INDIVIDUAL CAPACITY, AND NOT AS A PLAINTIFF OR CLASS MEMBER IN ANY PURPORTED CLASS OR REPRESENTATIVE PROCEEDING. Further, where permitted under the applicable law, unless ...
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"YOU AND COINBASE AGREE THAT EACH MAY BRING CLAIMS AGAINST THE OTHER ONLY IN YOUR OR ITS INDIVIDUAL CAPACITY, AND NOT AS A PLAINTIFF OR CLASS MEMBER IN ANY PURPORTED CLASS OR REPRESENTATIVE PROCEEDING.— Excerpt from Coinbase's Coinbase User Agreement
1) REGULATORY LANDSCAPE: Class action waivers in consumer financial services contracts interact with the Federal Arbitration Act and state consumer protection statutes. The CFPB has previously attempted to restrict class action waivers in certain financial product agreements; the current regulatory posture depends on active agency enforcement priorities. State attorneys general in California and other jurisdictions have challenged the enforceability of class action waivers in consumer financial contracts. 2) GOVERNANCE EXPOSURE: High. The combination of mandatory arbitration and class action waiver significantly affects the legal recourse structure for retail users. Institutional compliance teams should note that this provision, if unenforceable in a given jurisdiction, could expose Coinbase to class litigation that in turn creates reputational and financial risk for institutional counterparties. 3) JURISDICTION FLAGS: California courts and the California Supreme Court have historically scrutinized class action waivers in consumer adhesion contracts. Users in jurisdictions with statutes that provide for class-wide arbitration or that limit waivers of public injunctive relief should evaluate whether this provision applies fully to their claims. 4) CONTRACT AND VENDOR IMPLICATIONS: Institutional users should assess whether this provision applies to commercial disputes arising from business account use and whether the waiver is consistent with their own vendor contract standards. 5) COMPLIANCE CONSIDERATIONS: Legal teams should document whether the class action waiver was disclosed conspicuously at the time of account acceptance and whether any state-specific disclosures were provided to users in jurisdictions with heightened requirements.
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Coinbase's User Agreement includes a mandatory arbitration clause that most users may not have reviewed. Here is what the clause states and how the opt-out process works.
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Under this clause, users are contractually precluded from joining or initiating class action litigation against Coinbase, which affects the practical feasibility of pursuing smaller-value claims that may only be economical in aggregate.
The agreement requires that claims be brought individually rather than as part of a class or representative action. This provision applies in conjunction with the mandatory arbitration clause.
ConductAtlas has identified this type of provision across 16 platforms. See the full comparison.
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