Coinbase has filed a motion to compel the SEC to produce Gary Gensler’s private emails amid their ongoing legal battle.
Coinbase has submitted a motion to compel the United States securities regulator to disclose Gary Gensler’s private correspondence in the context of its ongoing legal dispute with the regulator.
It follows Coinbase’s letter to Judge Katherine Polk Failla last week, stating its intention to reduce the scope of its document request from the regulator in response to opposition.
In April, Coinbase requested a copy of private communications from Gensler (both before and during his tenure as SEC Chair). However, the SEC and Judge Failla have since objected.
Gensler’s private communications from his tenure as Chair of the Securities and Exchange Commission (SEC) in 2021 are now requested in the new July 23 petition and other documents.
“Coinbase withdrew its requests regarding pre-chair communications following a preliminary conference with the Court,” the motion stated.
“It is now attempting to compel only documents and communications that are responsive to Subpoena Request No. 23 and several SEC requests.” Reference is made to documents regarding Gensler’s speeches regarding the regulatory status of digital assets and exchanges in subpoena request 23.
It has contended that the documents could be a critical component of its defense against accusations that it permitted the unlawful trading of unregistered securities on its platform.
“Documents related to these communications bear directly on the claims the SEC now asserts and on Coinbase’s fair notice defense,” said Coinbase chief legal officer Paul Grewal in a post on X on July 24.
“We’re entitled to know all the cards the other side has,” he told Law360 before adding, “We’re not trying to play Texas Hold’ Em with all the cards face down.”
The SEC has declined to search for documents beyond its Enforcement Division’s investigative files, citing a lack of relevance and an undue burden, as stated in the motion.
“The SEC justifies this conduct based on relevance, burden, and privilege.” “None of them is credible,” it included.
The motion also requests information regarding SEC staff conversations with other market participants.
Coinbase is also searching for documents regarding Gensler’s public statements regarding crypto regulation and its 2021 public offering, which necessitated a six-month SEC review. The motion was as follows:
“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.”
In June 2023, the Securities and Exchange Commission (SEC) filed a lawsuit against Coinbase, alleging that the company has violated federal securities laws by listing 13 tokens that it claims are securities and has been operating as an “unregistered securities broker” since 2019.
