Coinbase initially sought access to both current and past private communications of SEC Chair Gary Gensler. However, following reluctance from Judge Katherine Polk Failla, a recent filing on July 15 indicates that Coinbase will now only request records from Gensler’s tenure starting in April 2021.
Coinbase’s legal team argued that access to Gensler’s private chats dating back to 2017 would provide crucial insights into their defense strategy, showing the evolution of his views on crypto regulations. Before his SEC appointment, Gensler taught a “Blockchain and Money” course at the Massachusetts Institute of Technology in 2018.
Judge Failla expressed concerns about the burden of probing into Gensler’s statements prior to his tenure as chair.
Coinbase is expected to submit its opening brief to compel document production on July 23, with the SEC set to respond by Aug. 5.
In June 2023, the SEC accused Coinbase of violating federal securities laws by listing 13 tokens it considers securities, labeling the platform as an “unregistered securities broker” since 2019. Coinbase disputes these charges, asserting that the tokens do not qualify as securities and therefore should not be subject to SEC regulations.
Additionally, Coinbase has accused the SEC and the Federal Deposit Insurance Corporation (FDIC) of obstructing their Freedom of Information Act (FOIA) requests for documents.
Despite these legal challenges, Coinbase’s stock prospects are looking up. Bank of America recently upgraded its rating on Coinbase shares from underperform to neutral, with a new price target of $217, up from $110.