The U.S. Securities and Exchange Commission (SEC) has urged a federal court to reject Coinbase’s sweeping subpoena request, which seeks to obtain the personal communications of SEC Chair Gary Gensler. Coinbase, led by CEO Brian Armstrong, has been accused by the SEC of overreaching in its strategy to gather evidence for its defense in the ongoing legal battle with the SEC over alleged securities law violations, CoinDesk reports.
The SEC’s recent court filing characterizes Coinbase’s subpoena requests as “breathtakingly broad,” aiming to procure virtually any document related to cryptocurrency. This filing is the latest development in the SEC’s case against Coinbase, which involves accusations of the exchange operating as an unregistered securities exchange, broker, and clearing agency, as well as the unregistered sale of securities linked to its staking products.
In April, Coinbase initiated its document production request from the SEC. By June, Coinbase expanded its demands to include Gensler’s personal communications concerning cryptocurrency, dating back to four years before his appointment as SEC Chair. Additionally, Coinbase issued a similar subpoena to the Massachusetts Institute of Technology (MIT), where Gensler previously taught blockchain technology courses. However, Coinbase has since decided not to pursue records from MIT.
The SEC has deemed Coinbase’s request for Gensler’s personal communications as a “blatant impropriety.” In a June 28 letter, the SEC urged District Judge Katherine Polk Failla to dismiss Coinbase’s demands. Judge Failla expressed her surprise and disapproval during a pre-trial conference on July 11, specifically questioning the relevance of Gensler’s pre-appointment communications.
Judge Failla instructed Coinbase to refine its approach and submit a motion to compel, aiming to resolve the discovery dispute. Coinbase filed this motion on July 23, slightly narrowing its subpoena scope but maintaining its core requests.
