An Update on SEC’s Legal Battle with Coinbase
Recently, the U.S. Securities and Exchange Commission (SEC) pushed back against Coinbase’s efforts to obtain documents related to crypto assets. The SEC has filed a motion opposing Coinbase’s subpoena request, stating that it covers a broad range of documents related to crypto assets.
SEC’s Opposition to Coinbase’s Subpoena
The SEC’s motion, filed on Monday, is the latest development in the ongoing legal dispute between the regulatory agency and Coinbase. The exchange had requested documents from the SEC and its employees, including Chair Gary Gensler, to support its defense.
- The SEC objected to the request for Gensler’s personal communications.
- The subpoena was labeled as inappropriate by the SEC.
Court Proceedings and Rulings
Judge Katherine Polk Failla of the Southern District of New York was surprised by Coinbase’s demands regarding Gensler’s personal communications, especially those predating his role as SEC Chairman. Following a pre-trial conference on July 11, Failla directed Coinbase to refine its request and submit a motion to compel.
Background of Coinbase’s Legal Dispute with SEC
Last year, the SEC filed civil charges against Coinbase, alleging that the exchange operated as an unregistered securities exchange, broker, and clearing agency. Additionally, the SEC accused Coinbase of engaging in the unregistered sale of securities linked to its staking products.
- In April, Coinbase requested documents from the SEC.
- Two months later, Coinbase sought Gensler’s personal communications related to crypto.
- Subpoenas were also issued to MIT, where Gensler previously taught.
Final Thoughts on the Legal Battle
The conflict between the SEC and Coinbase continues to unfold as the regulatory agency opposes Coinbase’s efforts to obtain sensitive communications and documents. The outcome of this legal battle remains uncertain as the two entities navigate through their dispute.
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