The US Securities and Exchange Commission (SEC) challenges Coinbase’s extensive subpoena requests for “all documents that in any way relate to crypto assets.” The latest court documents highlight the SEC’s objection to Coinbase’s motion to seek agency communications-linked documents for its defense in the upcoming trial. These documents include Chair Gary Gensler’s related emails.
The SEC charged Coinbase for operating as an unregistered broker, exchange and clearing agency; alleging that the exchange’s staking programs also violated securities laws. The commission claims that it has produced 240,000 documents and is searching for another 117,000 documents for responsive material. It covers emails from non-enforcement staff that the exchange claims are relevant to fair notice.
Coinbase CLO asks for transparency
Paul Grewal, Chief legal officer of Coinbase, said that the SEC’s response to the motion shows its inconsistent views of digital assets and its regulatory reach. He added that if the commission is moving ahead to engage in an unprecedented regulation by enforcement campaign then “Transparency” is the least they owe to the public.
The US’s biggest crypto exchange urged the court to ask the commission to present important documents in discovery. Coinbase demanded the document related to the tokens mentioned in the complaint, SEC’s consideration of its public offering with statements Gensler has made in his personal and professional capacity during his SEC tenure.
In April, Coinbase requested documents from the SEC and later it asked for Gary Gensler’s crypto-related communications during his tenure and four years prior. The exchange also subpoenaed MIT, where Gensler taught blockchain technology. Recently, Coinbase has informed the court it would not pursue records outside Gensler’s agency role.
The court filing shows that the commission argues that the documents that Coinbase seeks are not relevant to the SEC’s claims. It added that the exchange requests the SEC to produce the documents of 17 additional custodians using additional search terms. This is all being done so that the defendants could find some document related to its platform and services, the “Named Tokens”, or the “application of the securities laws to digital assets.”
Grewal opens up on seized crypto assets
Coinbase’s Chief legal officer issued his take on the seized crypto assets. He stated that these assets are not Congressionally appropriated funds and there is nothing new in the FEC complaint.
Grewal highlighted that Coinbase is working closely with federal law enforcement and remains committed to playing a trusted role in the Marshals Service’s cryptocurrency services requirement. However, it is funded by the sale of assets abandoned to the DOJ’s Assets Forfeiture Fund.
Seized crypto assets are not Congressionally appropriated funds, period. There is nothing new in the FEC complaint filed by a self-described crypto critic and Public Citizen’s research director, but it is notable that there is no minimum bar to file such a complaint, and this one…
— paulgrewal.eth (@iampaulgrewal)
He stressed on the matter that the exchange has donated to US Democrats and GOP super PACs equally with $500K to House and Senate funds for each party, respectively, for 2024.