The US Securities and Exchange Commission [SEC] has asked a New York court to deny Coinbase’s motion to compel the agency to release all documents related to crypto.
In its latest filing, the lawyers representing the agency said that the firm is asking “essentially all documents that in any way relate to crypto assets.” The sought material is “entirely irrelevant” to the court case, they contended.
They further went on to brand Coinbase’s subpoena request as “breathtakingly broad.” Meanwhile, Coinbase’s lawyers have time and again contended that the records could potentially be useful for defense in its upcoming trial against the regulatory agency.
The latest filing is in connection with the SEC’s case against the exchange filed in June 2023. The agency alleged that Coinbase functioned as an “unregistered securities broker” since 2019 and violated US securities laws.
Coinbase has been on the hunt for SEC records and Chief Gary Gensler’s communications for quite some time. It had previously filed to get access to data on Gensler’s personal devices. This came on the heels of the SEC not providing any explicit details related to his communications with market makers.
Coinbase wants to get hold of documents about crypto from 2017 until now. For context, Gensler was sworn in as the SEC Chair only in 2021. Last time, the agency called the exchange's demand as an "improper intrusion into a public official's private life."
The SEC lawyers continue to argue that the SEC Chair is neither a fact nor an expert witness in the case. This, in turn, could set a concerning precedent for other cases in the going forward.
In the latest submission, the SEC alleged that Coinbase did not cite any former cases or legal principle to underpin its “extraordinary” requests. Lawyers added,
“Unsatisfied, Coinbase continued to press the SEC to conduct a sprawling search of all agency records — including all internal files and all communications with government agencies and market participants.”
Coinbase’s chief legal officer Paul Grewal, meanwhile, batted for transparency, given the SEC has been inconsistent with its stance on crypto assets. He said,
“If the SEC is going to engage in an unprecedented regulation by enforcement campaign, the least they owe to those they target – and the public – is transparency.”
