Coinbase has filed a motion to compel the U.S. Securities and Exchange Commission （SEC） to produce private emails of its Chair, Gary Gensler. This motion is part of Coinbase’s legal battle with the regulator over allegations of illegal trading of unregistered securities.
Points
- Coinbase files motion to compel SEC to produce Gensler’s private emails
- Legal battle over allegations of illegal trading of unregistered securities
- Motion focuses on Gensler’s communications during his time as SEC Chair
- Importance of documents for Coinbase’s fair notice defense
- SEC’s refusal to search beyond Enforcement Division’s files
Coinbase has intensified its legal battle with the U.S. Securities and Exchange Commission （SEC） by filing a motion to compel the regulator to produce private emails of its Chair, Gary Gensler. This motion, filed on July 23, focuses on obtaining Gensler’s communications during his tenure as SEC Chair, which Coinbase argues are crucial for its defense against allegations of allowing illegal trading of unregistered securities on its platform.
The motion comes after Coinbase initially sought copies of Gensler’s private communications in April but faced resistance from both the SEC and the presiding judge. The new motion narrows the scope to Gensler’s communications from 2021 onwards, aiming to uncover documents that could support Coinbase’s fair notice defense.
“Following a preliminary conference with the Court, Coinbase withdrew its requests concerning pre-Chair communications,” the motion stated. “It now moves to compel only documents and communications responsive to Subpoena Request No. 23” and several SEC requests. Subpoena request 23 refers to documents concerning Gensler’s speeches on the regulatory status of digital assets and exchanges.
Coinbase’s chief legal officer, Paul Grewal, emphasized the importance of these documents in a post on X （formerly Twitter） on July 24, stating, “Documents related to these communications bear directly on the claims the SEC now asserts and on Coinbase’s fair notice defense.” He added that Coinbase is entitled to know all the information held by the other side, comparing the situation to playing Texas Hold’em with all the cards face down.
The SEC has so far refused to search for documents outside of its Enforcement Division’s investigative files, citing lack of relevance and undue burden. Coinbase’s motion challenges this refusal, arguing that the SEC’s justifications do not hold water.
解説
- Legal defense: The motion to compel aims to uncover critical documents that could support Coinbase’s fair notice defense against SEC allegations.
- Regulatory scrutiny: The case highlights the intense scrutiny faced by crypto exchanges from regulatory bodies like the SEC.
- Transparency and accountability: The motion seeks to hold the SEC accountable for its communications and decisions regarding crypto regulation.
- Strategic litigation: Coinbase’s legal strategy involves pushing for transparency and fairness in regulatory enforcement, which could have broader implications for the crypto industry.