Coinbase has filed a motion to compel the SEC and its Chair, Gary Gensler, to provide documents related to internal discussions that are critical to Coinbase’s legal defense against allegations of illegal trading of unregistered securities.
Points
- Coinbase files motion to compel SEC and Chair Gensler to produce documents
- Focus on internal communications during Gensler’s tenure
- Importance for Coinbase’s fair notice defense
- SEC’s refusal to search beyond Enforcement Division’s files
- Ongoing legal battle over alleged illegal trading of unregistered securities
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 internal documents involving discussions made by SEC Chair Gary Gensler. This motion, filed on July 23, seeks to obtain communications during Gensler’s tenure that Coinbase argues are critical to its defense against allegations of facilitating the illegal trading of unregistered securities.
The motion follows Coinbase’s initial request in April for Gensler’s private communications, which faced resistance from both the SEC and the presiding judge. Coinbase has since narrowed its request to focus on communications from 2021 onwards, aiming to uncover documents that support its fair notice defense.
“Documents related to these communications bear directly on the SEC’s claims and on Coinbase’s fair notice defense,” Coinbase stated. “The SEC will not search for these relevant documents. It refuses to search any documents outside of a self-selected group of Enforcement Division investigatory files. And it refuses a produce-or-log protocol for any custodian email searches. That extends to Chair Gensler’s SEC emails, and even to asking Chair Gensler whether he used his personal email for communications about his public statements on these subjects that he said were made in his personal capacity.”
Paul Grewal, Coinbase’s chief legal officer, highlighted the importance of these documents in a post on X （formerly Twitter） on July 24, asserting that Coinbase has the right to access all relevant information held by the SEC. He compared the situation to playing Texas Hold’em with all the cards face down, emphasizing the need for transparency and fairness.
The SEC has refused to search for documents beyond 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 are insufficient.
解説
- Legal strategy: The motion to compel is part of Coinbase’s broader legal strategy to obtain critical documents that could support its fair notice defense against SEC allegations.
- Regulatory scrutiny: The case highlights the intense scrutiny faced by crypto exchanges from regulatory bodies and the importance of transparency in regulatory enforcement.
- Transparency and accountability: Coinbase seeks to hold the SEC accountable for its communications and decisions regarding crypto regulation, emphasizing the need for fairness in regulatory actions.
- Broader implications: The outcome of this legal battle could have significant implications for the crypto industry, potentially influencing how regulators approach similar cases in the future.