oinbase Vs. SEC Lawsuit: In a significant move, the leading crypto exchange has continued its legal battle, seeking to subpoena SEC Chair Gary Gensler. Despite recent challenges, Coinbase presses for access to Genslerâs personal devices and emails, hoping to uncover crucial communications about the crypto market.
For context, in a recent hearing, where the SEC seeks to dismiss Coinbaseâs subpoena on Gary Gensler, Judge Katherine Polk Failla showed dismay with Coinbaseâs effort. Commenting on the development, she said that she was âsurprisedâ and that too ânot in a good wayâ.
Coinbase Vs. SEC Lawsuit: Legal Showdown Intensifies
On July 11, the U.S. District Court for the Southern District of New York held a hearing on the exchangeâs request in the ongoing Coinbase Vs. SEC lawsuit. Coinbaseâs lawyer argued that the U.S. SEC had not assured them that Gensler hadnât used personal devices to communicate with market participants.
However, Judge Katherine Polk Failla found these arguments speculative and noted that requests for information before Genslerâs chairmanship would be difficult to justify. Notably, Judge Failla suggested that Coinbase should focus on obtaining information from the period after Gensler became Chair.
However, despite setbacks, Coinbase remains determined. âWeâre unable to get information from the SEC,â Coinbaseâs lawyer stated, emphasizing the need for transparency regarding Genslerâs communications.
Meanwhile, the SECâs lawyer, Jorge Tenreiro, countered that Coinbaseâs request was intrusive, arguing that the focus should be on the SECâs actions, not on Genslerâs personal communications. He stated, âChair Gensler is not a fact witness, and is certainly not an expert witness on the law.â
Judge Failla expressed concerns about the burden of inquiry but indicated that further briefing would be expected. Lastly, Judge Failla asked Coinbase to file a motion to compel âby Mondayâ if they are not willing to withdraw the subpoena on Gary Gensler. Coinbaseâs lawyer agreed to that, reflecting its push towards legal clarity.