Coinbase has refined its approach in its effort to subpoena U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler. Initially seeking access to Gensler’s private communications before and during his time as SEC Chair, Coinbase is now focusing solely on his communications during his tenure as Chair.
Strategic Shift in Subpoena Request
Coinbase’s legal team initially argued that Gensler’s private communications from before and during his time as SEC Chair were essential for their defense in the SEC’s lawsuit against the crypto exchange. However, a July 15 filing indicates that Coinbase will now seek documents only from Gensler’s time as SEC Chair, following Judge Katherine Polk Failla’s hesitancy to approve the broader request.
Excerpt from the filing: “With respect to the subpoena to Mr. Gensler, Coinbase has determined to seek the production of Mr. Gensler’s documents only for the period of his tenure as Chair of the SEC.”
Background and Legal Arguments
Gensler has been SEC Chair since April 2021. Coinbase’s initial request aimed to access communications dating back to 2017, a year before Gensler began teaching a “Blockchain and Money” course at the Massachusetts Institute of Technology in 2018. Coinbase believes that Gensler’s private communications are crucial for understanding how his views on cryptocurrency regulation have evolved.
Judge Failla expressed concerns about the burden of examining Gensler’s statements prior to his role as Chair. This influenced Coinbase’s decision to narrow their subpoena scope.
Also Read: Coinbase Launches Unified Crypto Management Platform
Upcoming Legal Proceedings
Coinbase is set to submit its opening brief for the motion to compel on July 23, with the SEC’s response due by August 5.
The SEC initiated legal action against Coinbase in June 2023, accusing the exchange of violating federal securities laws by listing 13 tokens it deems securities and operating as an “unregistered securities broker” since 2019. Coinbase maintains that the tokens listed on its exchange should not be classified as securities and therefore fall outside the SEC’s regulatory purview.
The outcome of this legal battle could have significant implications for the cryptocurrency industry, potentially influencing regulatory frameworks and enforcement actions.
