The legal fight between Coinbase and the SEC has heated up, with the SEC resisting Coinbase’s wide-ranging subpoena requests.
In the ongoing legal fight between the SEC and Coinbase, the SEC says Coinbase’s attempt to get emails from SEC Chairman Gary Gensler is excessive and irrelevant.
SEC Challenges the Extensive Document Requests
Court documents filed on Monday show that the SEC believes the trade company’s request for more documents and evidence is too much for what the case needs.
The SEC argues that the court’s decision should be based on the facts and the law, not on the SEC’s internal discussions or communications with market participants. The regulator also points out that there is no precedent suggesting that internal discussions between Gensler, other SEC members, and outside organizations would support it’s defense.
The SEC has already given Coin base over 240,000 relevant documents. It claims that they haven’t explained why they needs more documents. The SEC says that providing these extra documents would mean logging and processing another three million, which would be too much work.
SEC’s Lawsuit Against Coinbase: A Timeline
The legal fight started in June 2023 when the SEC sued Coinbase, claiming that the exchange is acting as an unregistered securities exchange, broker, and clearing agency. In response, Coinbase argues that the SEC is going too far with its regulations and hasn’t clearly explained what counts as a security.
What’s the Position?
The Exchange argues that the SEC’s documents will show how unclear the regulatory rules are. However, a US judge recently said that the reasons for the subpoena were not convincing and that the company’s credibility has suffered. Despite this, it believes that getting these documents is crucial for its defense.
Recent Developments
Late last week, it reported $1.4 billion in Q2 revenue, saying that “improving regulatory clarity” is helping innovation in the crypto industry. The SEC and the exchange have not yet responded to requests for comments.
The legal fight with SEC has heated up, with the SEC saying that Coinbase’s broad requests for information are excessive and irrelevant to the case. This highlights the ongoing tension between regulators and the crypto industry. As the dispute goes on, the outcome could greatly affect how cryptocurrency is regulated in the future.
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