Coinbase Vs. SEC: Coinbase Pushes To Subpoena Gary Gensler Despite Recent Setback

Coinbase Vs. SEC Lawsuit: In a significant move, the leading crypto exchange has continued its legal battle, seeking to subpoena SEC Chair Gary Gensler. Despite recent challenges, Coinbase presses for access to Gensler’s personal devices and emails, hoping to uncover crucial communications about the crypto market.

For context, in a recent hearing, where the SEC seeks to dismiss Coinbase’s subpoena on Gary Gensler, Judge Katherine Polk Failla showed dismay with Coinbase’s effort. Commenting on the development, she said that she was “surprised” and that too “not in a good way”.

Coinbase Vs. SEC Lawsuit: Legal Showdown Intensifies

On July 11, the U.S. District Court for the Southern District of New York held a hearing on the exchange’s request in the ongoing Coinbase Vs. SEC lawsuit. Coinbase’s lawyer argued that the U.S. SEC had not assured them that Gensler hadn’t used personal devices to communicate with market participants.

However, Judge Katherine Polk Failla found these arguments speculative and noted that requests for information before Gensler’s chairmanship would be difficult to justify. Notably, Judge Failla suggested that Coinbase should focus on obtaining information from the period after Gensler became Chair.

However, despite setbacks, Coinbase remains determined. “We’re unable to get information from the SEC,” Coinbase’s lawyer stated, emphasizing the need for transparency regarding Gensler’s communications.

Meanwhile, the SEC’s lawyer, Jorge Tenreiro, countered that Coinbase’s request was intrusive, arguing that the focus should be on the SEC’s actions, not on Gensler’s personal communications. He stated, “Chair Gensler is not a fact witness, and is certainly not an expert witness on the law.”

Judge Failla expressed concerns about the burden of inquiry but indicated that further briefing would be expected. Lastly, Judge Failla asked Coinbase to file a motion to compel “by Monday” if they are not willing to withdraw the subpoena on Gary Gensler. Coinbase’s lawyer agreed to that, reflecting its push towards legal clarity.

Amid this, the latest filing for a pre-motion conference has further fueled discussions.

Also Read: US Bitcoin ETFs See $1.1 Billion Inflow This Week, BTC Holdings At All-Time High

New Developments In The Legal Battle

Amid this legal wrangling, Elizabeth Goody has joined the SEC’s legal team against Coinbase. In a recent filing with the court, Elizabeth Goody has filed to appear as a counsel to the U.S. SEC, further intensifying market discussions.

Meanwhile, this addition comes as the SEC has recently closed investigations into several crypto firms, including Consensys, Paxos, and Hiro, without recommending enforcement actions. This move has sparked discussions in the crypto market about the SEC’s current stance on crypto regulations.

However, Coinbase CLO Paul Grewal commented on these recent developments, expressing hope that the SEC’s retreat signals a willingness to work with the crypto industry in good faith. In a recent X post, Grewal stated:

Let’s hope that what is plainly a retreat signals the SEC is ready to start acting in good faith and actually work with the industry it claims to engage, rather than just handing out Wells notices like candy.

Meanwhile, this ongoing Coinbase Vs. SEC lawsuit highlights the broader struggle for regulatory clarity in the crypto industry. Coinbase’s persistent efforts to subpoena Gensler reflect the company’s determination to ensure transparency and fairness in the regulatory process.

Also Read: Crypto Stocks Rebound as COIN, MSTR, and MARA Soar

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