Gemini’s Nifty Gateway Wins Bid to Send NFT Case to Arbitration

Gemini Trust Co. and its Nifty Gateway business convinced a federal court to send to arbitration a proposed class action brought by a non-fungible token buyer who alleges the digital assets are securities.

Judge Analisa Torres in the US District Court for the Southern District of New York rejected John Hastings’ argument that arbitrating class action securities claims goes against public policy and hinders those claims from being effectively resolved.

Torres said she wasn’t convinced that “judicial intervention” was required by the Private Securities Litigation Reform Act, a 1995 law that dealt with securities class actions. Because the PSLRA “ ...