Coinbase Moves to Compel SEC to Release Documents in Ongoing Legal Battle Over Crypto Regulations

Coinbase has recently filed a motion aiming to compel the U.S. Securities and Exchange Commission (SEC) to provide crucial documents that the company claims are essential for its defense. This legal request, submitted in the Southern District Court of New York, specifically targets SEC Chairman Gary Gensler. Coinbase argues that, in discussions prior to the legal actions, the SEC had engaged with stakeholders in the crypto market and offered guidelines about crypto regulations. Yet, according to Coinbase, the SEC is now declining to search for or supply documents that pertain to its prior guidance, claiming instead that these files are irrelevant.

The motion from Coinbase describes the SEC’s refusal as unjustified. The SEC contends that looking for documents outside of a carefully selected set of investigatory files would impose a heavy burden on the agency. Furthermore, the SEC stands by its decision to not log certain documents, citing claims of privilege. In contrast, Coinbase insists that the documents in question are vital for its defense. The company points out that many of these requested papers involve communications with token issuers and market players, which, in their view, shouldn’t be protected by claims of privilege.

In June 2023, the SEC filed charges against Coinbase, alleging that the platform was functioning as an unregistered securities exchange and broker and that its staking services were equivalent to unregistered securities offerings. Coinbase disputes these claims, suggesting that the SEC lacks the authority from Congress to regulate digital assets in this manner and that it did not receive proper notice regarding any potential violations. The ongoing legal battle remains significant for both parties, as it could set important precedents in the regulation of the cryptocurrency market.