The legal battle between the United States Securities Exchange Commission (SEC) and Coinbase has taken a new twist. In a recent filing, the regulator pushed back against Coinbase’s demand for documents, including Gensler’s internal and external emails regarding cryptocurrencies. In a response to Coinbase’s filing requesting access to such documents, the SEC filed a motion, asking the court to reject the request.
According to reports, the requested documents entail relevant information relating to the application of securities laws when it comes to digital assets. The SEC, in its argument, insisted that Coinbase’s requests are overly broad , adding that the materials are irrelevant to the needs of the lawsuit. The regulatory agency also revealed that it has produced more than 240,000 documents and now searching another 117,000 documents for responsive material.
Earlier, Coinbase asked the court to issue a subpoena to SEC, seeking a search of Genslers’ personal emails. In its motion filed before the U.S. District Judge Katherine Polk Failla, the renowned crypto exchange claimed the information in the documents will serve as a source of discovery.
Genesis of the lawsuit between the SEC and Coinbase
Don’t forget that the SEC initiated the lawsuit against Coinbase in 2023, accusing the exchange of running an unregistered securities. It argued that many crypto assets offered on Coinbase are securities and therefore subject to its regulations. However, Coinbase completely disagreed with the stance. The exchange has continued to argue that these assets are digital commodities and not securities.
Recently, Coinbase accused the SEC and the FDIC of carrying out a deliberate campaign to kill crypto in the United States. According to the exchange, both agencies have been using every tool at their disposal to subdue the sector.
Beyond Gensler’s personal emails, Coinbase also demanded memos released by the FDIC between March 2022 to May 2023. In the filing, Coinbase cited the Freedom of Information Act to back its request for those documents.
The exchange demands transparency from the government in its steps to regulate the crypto market. It accused the SEC of failing to take a consistent approach to enforcing its securities laws.
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