TLDR
- Coinbase has now officially called for the SEC to comply with documentation requests, focusing on Gary Gensler's communications since he assumed his role at the SEC.
- The firm is stressing the importance of these documents in challenging the SEC's claim that Coinbase acted as an unlicensed securities exchange.
- Coinbase is also seeking details about talks between the SEC and other market participants, along with relevant materials from its 2021 public listing.
- The SEC has resisted going beyond its Enforcement Division’s investigation files, saying it’s too burdensome and unnecessary.
- Coinbase is deepening its legal conflict with the SEC, which launched a lawsuit in June 2023 over alleged regulatory violations.
Cryptocurrency exchange Coinbase Coinbase has taken further legal measures against the SEC, requesting documents it deems critical for defending itself in court.
In its filing in New York’s Southern District Court, Coinbase has asked for several document categories, including SEC Chair Gensler's internal communications since 2021.
Coinbase is particularly interested in the SEC's dialogues with players in the market and records pertaining to its 2021 IPO.
Coinbase’s tactic is part of its broader struggle with the SEC, which filed a lawsuit in June 2023, accusing Coinbase of functioning as an unlicensed securities marketplace from 2019 onward.
The SEC has also accused Coinbase of facilitating unauthorized securities transactions on its platform.
Coinbase believes that obtaining these documents is vital to demonstrate the SEC's historical stance on its operations and hopes to prove that it wasn't sufficiently warned about possible legal breaches.
Paul Grewal, Coinbase’s top legal advisor, expressed that their goal is transparency, implying they won't engage in a poker game where the rules aren’t clear.
Coinbase is urging the Court for an order compelling the production of pivotal documents as evidence, including files related to the assets named in the SEC's allegations. @SECGov The SEC remains firm, refusing to search outside its established records, arguing that such tasks exceed relevance and practicality. @coinbase Coinbase contests the SEC’s reluctance. Through its formal appeal, Coinbase labeled the SEC's stance as unsustainable and is asking that the court enforce thorough compliance or require a justified explanation otherwise.
— paulgrewal.eth (@iampaulgrewal) July 23, 2024
This development is a focussed iteration of a previous request Coinbase made, which initially sought Gensler's pre-chair communications. Faced with opposition, Coinbase is revising its ask to his tenure as Chair.
The dispute reflects a wider conversation on how crypto assets should be governed, with Coinbase questioning the SEC's Congressional mandate to oversee digital currencies
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