Crypto exchange Coinbase has shifted tactics amid its effort to subpoena the United States Securities and Exchange Commission Chair Gary Gensler — and is now seeking his private communications only while serving as Chair.
Coinbase’s lawyers initially argued that access to Gensler’s private chats — both before and during his tenure as SEC Chair — was an “appropriate source of discovery” to mount their defense in the securities regulator’s lawsuit against them.
But a July 15 filing states Coinbase is now going to seek access to Gensler’s communications during his time as SEC Chair after Judge Katherine Polk Failla showed a reluctance to accept Coinbase’s request last week:
“With respect to the subpoena to Mr. Gensler, Coinbase has determined to seek the production of Mr. Gensler’s documents only for the period of his tenure as Chair of the SEC.”
Gensler became SEC Chair in April 2021, but Coinbase initially wanted access to Gensler’s communications from 2017, a year before Gensler started teaching a “Blockchain and Money” course at Massachusetts Institute of Technology in 2018.
Coinbase argued access to Gensler’s private chats was crucial to understanding how his views on crypto-related regulatory matters have changed over time.
But Judge Falia said she had “strong views about the disproportionate burden of inquiry into Mr. Gensler’s statements before he became chair.”
Coinbase’s opening brief for its motion to compel is due on July 23, while the SEC will have until Aug. 5 to file a response.
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The SEC sued Coinbase in June 2023, accusing the exchange of violating federal securities laws by listing 13 tokens it says are securities and that Coinbase has operated as an “unregistered securities broker” since 2019 — nearly two years before its initial public offering in April 2021.
Coinbase argues the tokens listed on its exchange shouldn’t be considered securities, arguing they fall outside of SEC regulations.
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