Regulation
Coinbase Demands Gensler’s Private Emails in SEC Battle Over Cryptocurrency Rules
Monetary base criticized the U.S. Securities and Exchange Commission’s (SEC) effort to block “reasonable discovery” by the president Author: Gary Gensler in their ongoing legal battle.
Last month, the exchange asked the SEC chairman to produce communications, including emails, reflecting his views on digital assets from 2017 to the present.
The SEC challenged this move, citing concerns about burden and intrusion into privacy. The regulator argued that any subpoena should target the commission as an institution, not Gensler personally. The regulator said:
“To the extent that it is not, this is an improper intrusion into the private life of a public official based on his decision to serve. Given also the complete lack of relevance of the documents requested and the potential crippling effect on public service, the Court should quash the subpoena and issue a protective order.”
Why Coinbase Wants Gensler’s Emails
In response, Coinbase called the SEC’s argument baseless, noting that its request was relevant to understanding the President’s views on digital assets and federal securities laws.
Coinbase also highlighted Gensler’s communications with market participants as crucial to gaining insight into the agency’s stance on digital asset regulation. declared:
“What Mr. Gensler said in his private communications about the regulatory state of digital assets, and what market participants told him about these matters, is evidence of the public’s and market participants’ objective understanding of what conduct the securities laws prohibit.”
Additionally, Coinbase referred to the Ripple case law precedent, noting that the Court has confirmed that internal communications from agency staff can provide essential information, even if not publicly disclosed.
“As the Ripple court confirmed, a document or communication does not have to be public to provide information about the public’s objective understanding of what regulators require of them.”
THE Brian ArmstrongThe SEC-led exchange argued that the court should grant its request because Gensler, prior to his confirmation as SEC chairman, had “shaped and reflected the public’s understanding” of the commission’s regulatory efforts on digital assets.
Considering this, Coinbase stated that:
“It should come as no surprise that he might be subject to disclosure in an SEC action, especially when, as in this case, Mr. Gensler has been a key public voice on the regulatory state of the digital assets industry.”
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