Coinbase Criticizes SEC for Blocking Access to Chair Gary Gensler’s Emails
Coinbase has taken issue with the US Securities and Exchange Commission (SEC) for attempting to hinder the exchange’s access to “reasonable discovery” from Chair Gary Gensler in their current legal dispute.
In a recent development, the exchange had asked the SEC Chairman to provide specific communications, such as emails, that reflect his perspectives on digital assets dating back to 2017. However, the SEC pushed back against this request, raising concerns about the burden and intrusion on privacy. The regulator argued that any subpoena should focus on the commission as a whole, rather than targeting Gensler individually. The SEC stated:
“To the extent it is not, it is an improper intrusion into a public official’s private life, based on his decision to serve. Given also the utter lack of relevance of the requested documents, and the potential chilling effect on public service, the Court should quash the Subpoena and issue a protective order.”
Coinbase has defended its request by asserting that it is necessary to comprehend the Chairman’s stance on digital assets and federal securities laws. The exchange also emphasized the significance of Gensler’s interactions with market participants in understanding the agency’s approach to regulating digital assets. Coinbase explained:
“What Mr. Gensler was saying in his private communications about the regulatory status of digital assets, and what market participants were saying to him about these matters, is probative of the objective understanding of the public and market participants regarding what conduct the securities laws prohibit.”
Additionally, Coinbase referenced the Ripple case as a precedent, highlighting that internal communications from agency personnel can provide valuable insights, even if not publicly disclosed. The exchange further argued that Gensler’s communications are relevant because, before his tenure as SEC Chair, he had influenced the public’s perception of the commission’s regulatory actions in the digital asset industry.
In light of this, Coinbase stressed:
“It should hardly be surprising that he might be subject to discovery in an action brought by the SEC — especially where, as here, Mr. Gensler has been a key public voice on the regulatory status of the digital asset industry.”
This article mentioned Coinbase, the US, and legal matters.
