The ongoing legal battle between cryptocurrency exchange Coinbase and the U.S. Securities and Exchange Commission (SEC) took another turn as the regulatory body doubled down on its resistance to providing the company with requested documents.
Coinbase has been seeking access to a trove of SEC internal and external emails related to the application of securities laws to digital assets, including private communications of SEC Chair Gary Gensler. The company argues that this information is crucial to demonstrating the SEC’s inconsistent stance on cryptocurrencies and its overreach in regulation.
However, the SEC has labeled Coinbase’s discovery requests as overly broad and disproportionate to the case’s needs. In a recent filing, the agency asserted that it has already provided over 240,000 documents and is currently processing another 117,000. The SEC claims that producing the additional three million documents sought by Coinbase would be an unreasonable burden.
Coinbase Chief Legal Officer Paul Grewal has countered these claims, emphasizing the importance of transparency and accountability in the regulatory process. He argues that the public deserves to know how the SEC has been approaching the nascent crypto industry.
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The SEC’s lawsuit against Coinbase, filed in June 2023, alleges that the exchange operated as an unregistered securities broker by offering 13 crypto assets deemed to be securities. The case has since become a focal point in the broader debate over the regulatory framework for cryptocurrencies in the United States.
As the legal proceedings unfold, the outcome of this dispute over document disclosure could have far-reaching implications for the crypto industry and the balance of power between regulators and industry players.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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