SEC Pushes Back Against Coinbase's "Breathtakingly Broad" Subpoena Request

The U.S. Securities and Exchange Commission (SEC) has urged a federal judge to deny Coinbase’s extensive subpoena request for communications from SEC Chair Gary Gensler. The regulatory agency criticized Coinbase for seeking Gensler's personal emails, describing the request as "breathtakingly broad." This latest filing is part of the ongoing legal battle in which the SEC accuses Coinbase of violating securities laws by operating as an unregistered securities exchange, broker, and clearing agency, as well as the unregistered sale of securities related to its staking products.

Coinbase initially requested documents from the SEC in April and later expanded the request to include Gensler’s personal communications concerning crypto, extending back four years before his tenure as SEC Chair. Coinbase also issued a similar subpoena to MIT, where Gensler previously taught a blockchain technology class. However, Coinbase has since narrowed its request, focusing only on records from Gensler’s time at the SEC. The SEC has argued that Coinbase’s demand for Gensler’s personal communications is a “blatant impropriety,” and in a June 28 letter to the court, the SEC asked District Judge Katherine Polk Failla of the Southern District of New York to reject Coinbase’s request.

During a pre-trial conference on July 11, Judge Failla expressed surprise at Coinbase’s broad request, describing the arguments in favor of it as bordering on "fatuous." Following the conference, Failla directed Coinbase to refine its request. Coinbase complied on July 23, slightly narrowing the scope but maintaining its stance. Coinbase Chief Legal Officer Paul Grewal defended the request, stating on social media, "If the SEC is going to engage in an unprecedented regulation by enforcement campaign, the least they owe to those they regulate – and the public – is transparency."

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