In the latest development of the ongoing legal saga, **Coinbase**, the prominent cryptocurrency exchange, has escalated its battle with the **U.S. Securities and Exchange Commission (SEC)** by seeking access to private correspondences of the agency’s chair, Gary Gensler. The exchange has openly criticized the SEC’s efforts to prevent what it deems necessary discovery in the current legal proceedings.
Back in June, Coinbase made a formal request for Chairman Gensler to hand over communications, specifically emails, that would reveal his stance on digital currencies dating back to 2017.
The US regulatory watchdog, however, has pushed back against this demand, raising alarms over privacy violations. The regulator’s stance is that such a request constitutes an unwarranted invasion into the personal affairs of a public servant, chosen to serve the nation. Citing the irrelevance of the documents sought and the potential deterrent effect on public service, the regulator has urged the court to dismiss the subpoena and grant a protective order.
In a counter to the SEC’s motion, **Coinbase** has dismissed the regulator’s objections as unfounded, emphasizing the relevance of understanding Gensler’s perspective on digital assets and the application of federal securities laws.
Coinbase argues, “The private remarks of Mr. Gensler regarding the regulatory framework of digital assets, along with the feedback he received from market players, are crucial indicators of the public and market’s objective interpretation of the activities prohibited under securities laws.”
Additionally, Coinbase has invoked a legal precedent set in the Ripple litigation, asserting that the confidentiality of a document does not preclude it from shedding light on the public’s understanding of regulatory expectations.
At the same juncture, Coinbase also pointed out, “Given Mr. Gensler’s prominent role in public discourse concerning the regulation of the digital asset sector, it is to be expected that he might be subject to discovery in a lawsuit initiated by the SEC.”
**Coinbase** has also set its sights on the **SEC** and the **Federal Deposit Insurance Corporation (FDIC)**, embroiling them in a fresh controversy. The exchange has filed a lawsuit against both regulators.
In a dual-pronged legal strategy, Coinbase has accused the SEC and FDIC of non-compliance with Freedom of Information Act requests, petitioning the court to compel the agencies to respond to these inquiries, as reported by The Block on June 27.
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