The agreement specifies that California law governs the terms and disputes, and designates California state courts in San Francisco County and the U.S. District Court for the Northern District of California as the exclusive judicial forums for disputes not subject to arbitration.
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
This provision establishes the legal framework and judicial forum applicable to disputes under the agreement, requiring users outside California to litigate in California courts for matters not subject to arbitration.
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 →Current version added explicit conflict of law waiver, expanded federal jurisdiction to include Northern District of California, and changed language to reference lawsuits 'permitted hereunder' (reflecting arbitration requirement).
View full change record →This new provision establishes California law and San Francisco courts as the governing jurisdiction for non-arbitrated disputes, providing clarity previously absent.
View full change record →The agreement applies California law and designates California courts as the forum for any litigation. Users located outside California who have claims not subject to arbitration would be required to litigate in California courts under this provision.
How other platforms handle this
These Terms shall be governed by the laws of the State of California, excluding its conflicts of law rules, and the federal laws of the United States. Any dispute arising from or relating to the subject matter of these Terms shall be finally settled by arbitration in San Francisco County, California...
These Terms of Service and any dispute or claim arising out of or in connection with them or their subject matter or formation (including non-contractual disputes or claims) shall be governed by and construed in accordance with the laws of the State of Delaware, without giving effect to any choice o...
These Terms are governed by the laws of the State of Minnesota, without giving effect to any choice of law or conflict of law provisions. Any disputes not subject to arbitration will be resolved in the state or federal courts located in Hennepin County, Minnesota.
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"This User Agreement and your use of the Services are governed by and construed in accordance with the laws of the State of California, without regard to its conflict of law provisions. To the extent that any lawsuit or court proceeding is permitted hereunder, you and Coinbase agree to submit to the personal jurisdiction of the state courts of the State of California, located in San Francisco County, and the United States District Court for the Northern District of California.— Excerpt from Coinbase's Coinbase User Agreement
1) REGULATORY LANDSCAPE: Choice-of-law provisions in consumer financial services contracts interact with state consumer protection laws, some of which cannot be contractually waived by choice of a different state's law. Courts in jurisdictions other than California may decline to apply California law where doing so would deprive consumers of protections available under their home state law. 2) GOVERNANCE EXPOSURE: Low to Medium. The California governing law designation is common for companies headquartered in California and generally enforceable in commercial disputes. For consumer claims, courts in some jurisdictions may apply local consumer protection law notwithstanding the contractual choice-of-law. 3) JURISDICTION FLAGS: Users in states with strong consumer protection regimes should evaluate whether their state's courts would honor the California choice-of-law provision or apply local law to consumer financial claims. International users may face additional complexity. 4) CONTRACT AND VENDOR IMPLICATIONS: Institutional users with operations outside California should assess the practical implications of California forum selection for dispute resolution and whether the governing law designation is consistent with their contract standards. 5) COMPLIANCE CONSIDERATIONS: Legal teams should assess whether California law and forum selection clauses are enforceable against their organization and whether any applicable state or federal regulations supersede the contractual governing law for specific categories of claims.
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This provision establishes the legal framework and judicial forum applicable to disputes under the agreement, requiring users outside California to litigate in California courts for matters not subject to arbitration.
The agreement applies California law and designates California courts as the forum for any litigation. Users located outside California who have claims not subject to arbitration would be required to litigate in California courts under this provision.
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