Coinbase has slimmed down its subpoena to Gary Gensler, the Chair of the United States Securities and Exchange Commission (SEC).
Instead of seeking access to Gensler’s private communications spanning his entire professional history, the exchange has decided to narrow its scope and focus solely on his communications during his tenure as SEC Chair.
Initially, Coinbase’s legal team argued that obtaining Gensler’s private chats, both before and during his time as the SEC Chair, was essential to their defense in the ongoing lawsuit filed against them by the securities regulator.
Coinbase Adjusts its Subpoena Request
In a filing on July 15, Coinbase revealed its decision to adjust its subpoena request, taking into account Judge Katherine Polk Failla’s reservations expressed last week.
“With respect to the subpoena to Mr. Gensler, Coinbase has determined to seek the production of Mr. Gensler’s documents only for the period of his tenure as Chair of the SEC,” the filing states.
Gensler assumed the role of SEC Chair in April 2021, and Coinbase’s revised approach now aligns with the specific time frame of Gensler’s chairmanship.
Initially, Coinbase had sought access to Gensler’s communications dating back to 2017, a year prior to his involvement in teaching a “Blockchain and Money” course at the Massachusetts Institute of Technology in 2018.
Coinbase argued that understanding the evolution of Gensler’s views on crypto-related regulatory matters was crucial to their case.
Judge Failla, however, expressed concerns about the burden imposed by inquiries into Gensler’s statements before he assumed the position of SEC Chair, indicating a reluctance to grant Coinbase’s initial request.
Coinbase is required to submit its opening brief for the motion to compel on July 23, and the SEC will have until August 5 to file a response.
Coinbase Sued by the SEC
The SEC filed a lawsuit against Coinbase in June 2023, alleging that the exchange violated federal securities laws by listing 13 tokens it considers to be securities.
The agency claimed that Coinbase had operated as an “unregistered securities broker” since 2019, almost two years before its initial public offering in April 2021.
Coinbase maintains its stance that the tokens listed on its exchange should not be classified as securities, arguing that they fall outside the scope of SEC regulations.
More recently, Coinbase has accused the SEC and the Federal Deposit Insurance Corporation (FDIC) of improperly blocking its document requests.
The exchange alleges that the regulators are blocking access to documents that should be available under the Freedom of Information Act (FOIA).
Meanwhile, Bank of America (BAC) has recently upgraded its rating on Coinbase shares from underperform to neutral, raising its price target for Coinbase to $217 from $110.
Aside from Bank of America, investment banking firm KBW has also increased its Coinbase price target.
In a research analysis, KBW raised its Coinbase price target from $160 to $230 while maintaining its market performance rating.
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