Coinbase Shifts Legal Strategy in Pursuit of SEC Chair’s Communications

Coinbase has adjusted its approach in seeking access to the private communications of the current United States Securities and Exchange Commission Chair, Gary Gensler. The crypto exchange initially wanted to subpoena Gensler’s private chats both before and during his time as SEC Chair, claiming it was vital for their defense in the ongoing lawsuit against them. However, in a recent filing on July 15, Coinbase revealed it is now focusing solely on obtaining Gensler’s communications during his tenure as the SEC Chair.

The change in strategy comes after Judge Katherine Polk Failla expressed reservations about Coinbase’s initial broad request, stating concerns about the undue burden of investigating Gensler’s statements predating his time as Chair. Gensler assumed the role of SEC Chair in April 2021, but Coinbase’s initial request included accessing communications dating back to 2017. The exchange argued that understanding how Gensler’s perspective on crypto regulations evolved over time was crucial for their defense.

The SEC filed a lawsuit against Coinbase in June 2023, alleging that the exchange violated federal securities laws by listing certain tokens as securities and acting as an unregistered securities broker since 2019. Coinbase has contended that the tokens in question should not be classified as securities and are outside the scope of SEC regulations. The court has set deadlines for Coinbase’s motion to compel and the SEC’s response, indicating that the legal battle between Coinbase and the SEC is ongoing.