Coinbase refines subpoena to focus on Gensler’s period as SEC chair

Cryptocurrency exchange Coinbase has narrowed the scope of its subpoena to U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler.

Initially, the exchange requested access to both current and past private communications from SEC Chairman Gary Gensler. However, following reluctance from Judge Katherine Polk Failla, a final filing on July 15 indicates that Coinbase will now only request records from Gensler’s tenure, which began in April 2021.

Coinbase’s legal representatives have previously argued that Gensler’s private conversations dating back to 2017 would provide important information for their defense.

They believed this information could show how their views on crypto regulation have evolved. Prior to his appointment, Gensler taught “Blockchain and Money” at the Massachusetts Institute of Technology in 2018.

But Judge Failla expressed strong concerns about the undue burden of investigating Mr. Gensler’s statements before he assumed office.

Coinbase is expected to file its opening brief to compel document production on July 23, while the SEC is expected to respond by August 5.

The SEC accused Coinbase in June 2023 of violating federal securities laws by listing 13 tokens it deemed to be securities, calling the platform an “unregistered securities broker” since 2019.

Despite these accusations, Coinbase maintains that the listed tokens do not qualify as securities and therefore should not be subject to SEC regulation.

The exchange also accused the agency and the Federal Deposit Insurance Corporation (FDIC) of obstructing requests for documents under the Freedom of Information Act (FOIA).

Amid these legal complexities, Coinbase’s stock prospects appear to be improving. Bank of America recently upgraded its rating on Coinbase shares to neutral from underperform and set a new price target of $217 from $110.