Major Update in Coinbase-SEC Case: Coinbase Submits New Request to Court

New Legal Move by Coinbase

In a significant development, Coinbase has filed a lawsuit in a New York court, demanding that the U.S. Securities and Exchange Commission (SEC) and its Chairman, Gary Gensler, release documents related to internal discussions. These documents are deemed crucial for Coinbase's ongoing legal battle with the regulator.

Petition Filed

The petition, submitted on Tuesday, seeks a court order compelling Gensler and the SEC to disclose communications involving SEC commissioners and staff with crypto market stakeholders, including Coinbase, over the years. Coinbase contends that these documents are essential for its defense against the SEC's claims.

Background of the Legal Battle

The SEC sued Coinbase last year, alleging that the crypto exchange operated without proper registration. Although Coinbase sought to dismiss the lawsuit, U.S. District Judge Katherine Polk Failla denied the request. The case is now in the discovery phase, where both parties gather evidence.

Focus of the Request

Coinbase's petition targets documents related to several areas:

• Tokens mentioned in the SEC's complaint

• The SEC's April 2021 negotiations about Coinbase's public company status

• Statements made by Gensler during his tenure at the SEC

Statements from Coinbase

Paul Grewal, Coinbase's chief legal officer, highlighted the necessity of these documents for their defense. He stated, "We have the right to defend ourselves, and if they are talking to these token issuers about the law, the legal status of their projects, or the scope or reach of federal securities laws that apply to blockchain networks, we have the right to do so."

Grewal stressed the importance of uncovering any conflicting statements made by the SEC regarding the application of federal securities laws to cryptocurrencies.

Subpoena Narrowed

In June, Coinbase issued a subpoena to Gensler, requesting documents related to crypto communications from 2017. Last week, Coinbase narrowed the subpoena to focus specifically on Gensler's emails and communications from his time as SEC chairman.