- Coinbase seeks court relief over SEC’s refusal to release crucial documents.
- SEC criticized for withholding key evidence, hindering Coinbase’s defense.
Coinbase has escalated its legal confrontation with the U.S. Securities and Exchange Commission (SEC) by filing a motion for court relief, citing what it perceives as the SEC’s unfair and inconsistent regulatory tactics. The crypto exchange’s Chief Legal Officer, Paul Grewal, pointed out that the SEC’s refusal to produce essential documents, including emails from SEC Chair Gary Gensler, is obstructing the fairness of the ongoing case.
Notably, Coinbase contends that these documents, particularly those involving communications from SEC Commissioners and staff outside the Enforcement Division, are crucial for understanding the SEC’s stance on digital assets.
Today we’re also addressing the SEC’s refusal to produce the full record of its inconsistent views of digital assets and its own regulatory reach. Does a defendant to a suit by its own government deserve transparency about the facts of the case? We think the answer is obviously…
— paulgrewal.eth (@iampaulgrewal) August 12, 2024
The exchange argues that the SEC’s reluctance to search for specific custodians and its refusal to log and review non-enforcement documents violates a prior court order. It making it difficult for Coinbase to challenge the SEC’s privilege assertions or mount a fair defense.
SEC Defence
However, the SEC, defended its actions in an August 5 filing, calling Coinbase’s discovery requests overly broad and irrelevant to the case. The regulatory body also criticized Coinbase’s fair notice defense, which claims that crypto regulations lack clarity.
Meanwhile, Coinbase has also opposed a recent SEC proposal to expand the definition of “exchange” to include Decentralized Exchanges (DEXs). They argue that the proposal lacks critical analysis and could have severe consequences for the crypto industry. As the Coinbase vs. SEC lawsuit progresses, it is expected to play a significant role in shaping U.S. crypto regulation.
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