Coinbase has withdrawn its subpoena directed at SEC Chair Gary Gensler, specifically targeting information pertaining to his tenure as the head of the regulatory agency.
The decision is made in response to the New York judge’s concerns on the extensive nature of the request, which encompassed utterances about cryptocurrency dating back to 2017. The lawyer for Coinbase clarified that the subpoena has been limited to solely encompassing papers from Gary Gensler’s time as Chair of the Securities and Exchange Commission (SEC).
The SEC objected to the initial subpoena, deeming it a “inappropriate encroachment into a public official’s personal affairs.” Judge Katherine Polk Failla was taken aback by Coinbase’s letter on July 3, in which they claimed that Gary Gensler’s personal correspondence regarding crypto might be used as a valid means of obtaining compensation. She proposed initiating a legal action to enforce compliance, but was unconvinced by Coinbase’s insistence on obtaining a wide-ranging subpoena.
Since last year, the Securities and Exchange Commission (SEC) has been engaged in a legal conflict with Coinbase. The SEC filed a lawsuit against Coinbase, accusing the platform of operating without the necessary registration.
In March, Judge Failla rejected Coinbase’s motion to dismiss the action, stating that the SEC had provided enough evidence to support its claims that Coinbase functioned as an exchange, broker, and clearing agency, and that it conducted unregistered securities sales through its staking program.
The lawsuit’s verdict has the potential to have a substantial impact on the cryptocurrency industry. If the SEC is favored, it could result in more stringent regulatory supervision of crypto exchanges and digital asset platforms.
Conversely, if Coinbase prevails, it would support the industry’s position against perceived regulatory overreach. As the case progresses, the focus will shift towards the records from Gensler’s time as SEC Chair.
These documents have the potential to unveil the SEC’s regulatory strategy and decision-making process concerning bitcoin. This, in turn, could have an impact on the final result of the lawsuit.
