The Coinbase motion notes that the US securities regulator has refused to search for documents outside of its Enforcement Division’s investigative files.
On Tuesday, July 23, crypto exchange Coinbase filed a motion compelling the US Securities and Exchange Commission (SEC) to produce Gary Gensler’s private emails concerning the ongoing legal battle with the regulator.
Last week, crypto exchange Coinbase sent a letter to Judge Katherine Polk Failla stating that it intends to narrow the scope of its document request from another regulator after facing a major pushback. Earlier in April, Coinbase sought a copy of the private communication from Gensler, however, has received a pushback from both Judge Failla as well as the US SEC.
The new motion filed on July 23 requests access to Gensler’s private communications since he became SEC Chair in 2021, along with other documents. Besides, the motion noted:
“Following a preliminary conference with the Court, Coinbase withdrew its requests concerning pre-Chair communications. It now moves to compel only documents and communications responsive to Subpoena Request No. 23.”
The Subpoena Request 23 refers to all the documents associated with Gensler’s speeches on the regulatory status of exchanges as well as digital assets. Coinbase argues that the documents could play an important role in its defense against the allegations stating that the exchange allowed the illegal trading of unregistered securities on its platform. In a post on X, Coinbase chief legal officer Paul Grewal said:
“Documents related to these communications bear directly on the claims the SEC now asserts and on Coinbase’s fair notice defense. “We’re entitled to know all the cards the other side has. We’re not trying to play Texas Hold’ Em with all the cards face down.”
SEC’s Objection to Coinbase’s Demands
The Coinbase motion notes that the US securities regulator has refused to search for documents outside of its Enforcement Division’s investigative files. Interestingly, the SEC has claimed a lack of relevance and undue burden. “The SEC justifies this conduct on the grounds of relevance, burden, and privilege. None holds water,” it added.
The motion also requests details of discussions between SEC staff and other market participants. Additionally, Coinbase is seeking documents related to its 2021 public offering, which underwent a six-month SEC review, as well as records of Gensler’s public statements on cryptocurrency regulation.
“At no point did the SEC conclude that Coinbase was an unregistered exchange, broker, or clearing agency, nor did it identify any tokens listed on Coinbase’s platform – several of which are named tokens in this matter – that it believed were securities,” the motion reads.
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