Coinbase, the United States cryptocurrency exchange, continues its pursuit to access Gary Gensler’s personal communications, asserting they are pertinent to its ongoing legal clash with the financial regulatory body.
In April, Coinbase initially requested that Gensler disclose his personal communications, arguing their relevance to its case, particularly documents dating back to 2017 concerning cryptocurrencies.
However, the Securities and Exchange Commission (SEC) moved to block Coinbase’s request in a letter dated June 28 to District Court Judge Katherine Failla, firmly opposing the notion.
Undeterred, Coinbase responded with a filing on July 3, countering that Gensler’s personal communications about the regulatory status of digital assets and cryptocurrency exchanges during his tenure as SEC chair are central to its defense of fair notice.
According to Coinbase’s legal team, Gensler’s personal communications hold critical importance for their arguments. Source: CourtListener
“M. Gensler has publicly expressed his views and communicated with market participants, sometimes explicitly in a personal capacity,” Coinbase stated, underscoring the significance of scrutinizing these private messages.
Furthermore, the lawyers emphasized that Gensler’s communications, both during and prior to his tenure at the SEC, are equally crucial as they provide insights into his evolving perspectives on regulatory matters.
Related:
Coinbase takes legal action against SEC and FDIC for non-compliance with FOIA requests
In a July 3 update on X, Coinbase’s Chief Legal Officer reiterated their pursuit of “reasonable discovery” in response to the SEC’s litigation initiated against them.
“We have reacted to [the SEC’s] attempt to impede reasonable discovery from Mr. Gensler in a case it—rather than Coinbase—initiated,” wrote Paul Grewal, Coinbase’s Chief Legal Officer.
Source: Paul Grewal
In June 2023, the SEC filed a lawsuit against Coinbase, alleging the exchange violated federal securities laws by listing 13 tokens classified as securities, and operated as an unregistered securities broker since 2019, nearly two years before its IPO in April 2021.
Coinbase contends that the tokens listed on its platform should not be categorized as securities, arguing they do not fall within the purview of SEC regulations.
Magazine:
Godzilla vs. Kong — SEC faces fierce battle against crypto’s legal firepower