Coinbase Pushes for Gary Gensler's Private Emails

Coinbase Pushes for Gary Gensler's Private Emails in Legal Battle with SEC

Key Takeaways

Coinbase seeks Gary Gensler's emails post-2021 to defend against SEC allegations;
The SEC cites relevance and burden as reasons for withholding documents, which Coinbase disputes;
The lawsuit claims Coinbase listed 13 unregistered securities and operated as an unregistered broker.

Coinbase has taken a new step in its legal battle with the United States Securities and Exchange Commission (SEC), filing a motion to require the release of private emails from SEC Chair Gary Gensler.

Coinbase had initially requested access to Gensler's private communications from both before and during his tenure as SEC Chair; however, this request faced opposition from the SEC and the presiding judge, Katherine Polk Failla, prompting the company to adjust its approach.

On July 23, Coinbase filed a new motion requesting only emails and documents from Gensler's time as SEC Chair, starting in 2021.

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The new filing clarifies that Coinbase seeks documents and communications related to Gensler's comments on the regulatory framework for digital assets and exchanges, arguing they are essential to defend against allegations of facilitating illegal trading of unregistered securities.

The motion also argues that the SEC's resistance to Coinbase's document requests, citing relevance, burden, and privilege to limit searches to its Enforcement Division's investigative files, is unfounded.

Additionally, Coinbase seeks information on discussions SEC staff had with other market participants and documents related to its 2021 public offering. The motion highlights that during the six-month SEC review of Coinbase's public offering, the SEC did not indicate that Coinbase was operating as an unregistered exchange or that any of the tokens listed on its platform were considered securities.

The SEC's lawsuit against Coinbase, initiated in June 2023, accuses the company of violating federal securities laws by listing 13 tokens identified as securities and operating as an unregistered securities broker since 2019.

This latest motion underscores Coinbase's determination to obtain information it believes is vital for its defense, which could influence the outcome of its legal battle with the SEC.

In other news, the SEC has recently decided to drop its investigation into Paxos, the issuer of BUSD, without any enforcement action.