The cryptocurrency exchange Coinbase has responded to a motion by the SEC, in which the regulator seeks to block the disclosure of information from its chairman, Gary Gensler.
We have responded to @SECGov ‘s effort to block reasonable discovery from Mr. Gensler in a case that it—not Coinbase—chose to file. Democracy, as well as due process, dies in darkness. We appreciate the Court’s careful consideration of this matter. pic.twitter.com/YgXi6lElUX
— paulgrewal.eth (@iampaulgrewal) July 4, 2024
“Democracy, as well as due process, dies in darkness. We appreciate the Court’s careful consideration of this matter,” wrote the company’s chief legal officer, Paul Grewal.
The issue concerns Coinbase’s request for documents related to the legal status of cryptocurrencies. In a letter dated June 28, the SEC stated that the firm also sought access to Gensler’s personal emails to assess his true views and attitudes towards digital assets.
“This constitutes an improper intrusion into the privacy of a public servant. Given the complete lack of relevance of the requested documents and the potential chilling effect on government agencies, the court should quash the demand and issue a protective order,” the agency emphasized.
In a response letter, Coinbase’s lawyers argued that the official’s email is a “proper source of information”:
“What Gensler said in his private messages about the regulatory status of digital assets, and how market participants responded to him on this matter, serves as evidence of the objective understanding of what actions securities laws prohibit.”
Coinbase has been striving for clear rules from the SEC for the industry over recent years. In July 2022, the company filed a relevant petition with the Commission, and by April 2023, it had already turned to the courts.
The head of the agency, Gary Gensler, dismissed Coinbase’s claims, asserting that existing laws apply to the sector. In March, the platform appealed to a higher court, requesting the regulator be compelled to develop rules.
In June 2024, the cryptocurrency exchange sued the SEC and the FDIC for lack of transparency.