Coinbase Subpoena Request Narrowed to SEC Chair Gensler Amid Legal Battle

Key Points:

• Coinbase subpoena request was limited to SEC Chair Gary Gensler, focusing only on his communications during his tenure as the agency’s head.
• The SEC alleges Coinbase operates as an unregistered broker and clearing agency.

Coinbase has refined its subpoena to SEC Chair Gary Gensler, focusing solely on his communications during his tenure as the head of the agency.

Read more: Judge Denies Coinbase Subpoena Request for Gensler’s Communications, Lawsuit Continues

Coinbase Subpoena Request Adjusted to SEC Chair Amid Legal Dispute

The adjustment comes after a New York judge expressed reservations about the initial broader scope of the Coinbase subpoena request.

Initially, Coinbase’s legal team sought access to Gensler’s private chats from as far back as 2017, arguing these communications were crucial to their defense in the SEC’s lawsuit against the crypto exchange. They believed these chats would shed light on Gensler’s evolving views on crypto regulation, given his significant influence on the current regulatory landscape. Gensler began his term as SEC Chair in April 2021, prior to which he taught a “Blockchain and Money” course at MIT starting in 2018.

However, U.S. District Judge Katherine Polk Failla showed reluctance to accept such an extensive subpoena. She said the undue burden and disproportionate nature of probing into Gensler’s statements before he assumed his current role. In response to these judicial concerns, Coinbase’s latest filing, dated July 15, states they will limit their request to documents from Gensler’s time as SEC Chair.

Regulatory Tensions in Crypto Market Legal Struggle

Despite this narrowing of scope, the legal tug-of-war continues. During a recent hearing, Judge Failla was unpersuaded by Coinbase’s arguments for accessing Gensler’s personal emails about crypto, deeming them not compelling enough to warrant such an extensive discovery.

The ongoing litigation between Coinbase and the SEC is a significant chapter in the broader debate over crypto market regulation. The SEC’s complaint alleges that Coinbase operated as an unregistered broker, dealer, and clearing agency. Although Coinbase’s motion to dismiss the lawsuit was denied in March, the court did dismiss one claim related to the company’s Wallet application. Coinbase plans to file a motion to compel on July 23 to further address their discovery requests.