SEC Urges Court to Block Coinbase’s Extensive Document Demand

The U.S. Securities and Exchange Commission (SEC) has asked a New York court to reject Coinbase's subpoena demanding extensive documentation related to cryptocurrency assets.

The SEC argues that Coinbase’s request is overly broad, seeking nearly all documents related to crypto assets.

In its court filing, the SEC stated that it has already provided Coinbase with various documents, including those from investigative files and fair notice information, beyond what was specifically requested. The SEC criticized Coinbase for pushing for a sweeping search of all its records, internal files, and communications with other agencies and market participants, calling the request excessive and unsupported by legal precedent.

Coinbase’s Chief Legal Officer, Paul Grewal, responded on social media, asserting that if the SEC is undertaking a regulatory crackdown, it owes greater transparency to both Coinbase and the public.

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Additionally, Coinbase had previously sought a subpoena for SEC Chair Gary Gensler’s personal emails to aid their discovery process, a request which was denied by U.S. District Judge Katherine Polk Failla.

The ongoing dispute stems from the SEC’s lawsuit against Coinbase for operating as an unregistered securities exchange, with the SEC contending that many of the cryptocurrencies on Coinbase qualify as securities, a point Coinbase disputes, labeling most as digital commodities.

Alexander Stefanov