The San Francisco-based cryptocurrency exchange Coinbase has pushed back against the U.S. Securities and Exchange Commission (SEC) in their ongoing legal dispute.
The SEC, under Chair Gary Gensler, had sought to quash Coinbase’s application for “reasonable discovery” on digital assets during his time.
Coinbase argues that these communications are essential for their side of the case, saying that they are necessary to assess the legal environment of cryptocurrencies.
They particularly requested records from 2017 to Gensler’s appointment in 2021, arguing that Gensler’s emails could reveal the public andket sentiments on regulatory expectations.
The SEC, however, declined the request by Coinbase, stating that it was out of order to ask for his emails that are personal to Gensler. The agency also claimed that such documents are not germane to the case and could deter people from serving in public office.
In response, Coinbase provided precedents, including the Ripple case, which confirmed that non-public communications are still useful in determining regulatory requirements, and also stated that Gensler’s private communications might reveal how market actors perceived the SEC rules.
Coinbase counters the SEC’s claims, alleging a lack of clear legal guidelines, while also suing the SEC and FDIC for failing to respond to their Freedom of Information Act requests.
The decision made in this legal case may influence the relations between the regulatory bodies and the cryptocurrency exchanges in the future, defining the legal environment for the digital asset market.
The case is now in the hands of U.S. District Judge Katherine Failla, who will determine the admissibility of the discovery requests made by Coinbase.
Also Read: Ripple & Coinbase Cite Binance Ruling in SEC Disputes
