Judge Expresses Doubt in Coinbase’s Subpoena of SEC Chair
In a hearing on July 11, Judge Katherine Polk Failla raised concerns about Coinbase’s attempts to subpoena SEC Chair Gary Gensler in the ongoing case against the cryptocurrency exchange. The hearing highlighted Coinbase’s persistent efforts to obtain Gensler’s communications, even those made before he assumed his role as SEC Chair in 2021.
Judge Failla expressed skepticism towards Coinbase’s subpoena, stating, “I understood from the SEC’s opening submission that this request includes a period before his Chairmanship. You’ll have a hard row to hoe on that. I find your arguments speculative.”
Coinbase’s legal team defended their actions, arguing that even Gensler’s communications during his time as Chair were relevant to the case. However, the judge remained unconvinced, casting doubt on the legitimacy of the subpoena.
Coinbase Legal Battle with SEC Continues
Despite efforts to obtain information from the SEC, Coinbase has faced challenges in their legal battle. In an attempt to strengthen their fair notice defense, they have included Gensler’s pre-Chair communications in their case. However, this move was dismissed by Judge Failla, who urged Coinbase to reconsider their approach.
Although Coinbase argues that Gensler’s role in shaping public understanding of cryptocurrency justifies including his communications, Judge Failla expressed concern over the potential obstacles they may encounter. She emphasized her disappointment in the lack of cooperation from the SEC and advised Coinbase’s legal team to reassess their strategy.
SEC fights against subpoena for Gensler’s personal phone
The SEC’s legal representative, Jorge Tenreiro, argued against the subpoena, stating that requesting a public official’s personal phone is intrusive. Officials have important duties and the focus should be on the SEC’s actions, not one individual. Tenreiro emphasized that Gensler is not a fact witness or an expert on the law, and the subpoena should be quashed.
Coinbase cites previous case in defense
Coinbase countered by referencing a previous case where the Ripple court ordered the discovery of communications from 19 custodians, including then-Chair Jay Clayton. However, Tenreiro pointed out that the issue of personal devices had already been addressed in the Ripple case. Judge Failla seemed sympathetic to the SEC’s position, acknowledging the burden of inquiry into Gensler’s statements before assuming his role.
Judge’s Ruling on Coinbase Subpoena
In a recent ruling, Judge Failla directed Coinbase to file a motion to compel in an ongoing dispute with the SEC. The judge set a deadline for further scheduling discussions between Coinbase and the SEC, emphasizing the importance of moving forward with the legal process.
Background of the Dispute
The conflict between Coinbase and the SEC dates back to June when Coinbase requested documents and communications related to Gensler’s public statements on digital assets. The request also included other demands for information on the SEC’s actions. Following this, the SEC requested the court to quash the subpoena against Gensler.
Coinbase’s Response to Legal Motion
On July 3, Coinbase issued a response to a legal motion by emphasizing the importance of personal communications in their fair notice defense. This move comes as part of their ongoing efforts to address regulatory challenges and ensure compliance within the cryptocurrency industry.
Exclusive Offers for Crypto Traders
For a limited time, Binance is offering a special welcome bonus of up to $600 for new users who register using our exclusive link. Take advantage of this offer to kickstart your trading journey on one of the leading cryptocurrency exchanges in the world.
Additionally, BYDFi Exchange is providing a generous welcome reward of up to $2,888 for new users who sign up through our link. Don’t miss out on this opportunity to open a 100 USDT-M position for free and maximize your trading potential.
