The US District Judge Katherine Polk Failla has recommended that Coinbase exchange either abandon or modify its attempts to obtain US Securities and Exchange Commission (SEC) Chair Gary Gensler’s personal communications through a subpoena.
The hearing was conducted in response to the SEC’s petition to prevent Coinbase’s subpoena, which granted access to Gensler’s correspondence pertaining to cryptocurrencies.
Judge Failla expressed astonishment at Coinbase’s request and recommended that the exchange submit a motion to compel for a formal proceeding. The SEC objected to the subpoena, categorizing it as a “inappropriate encroachment” on Gensler’s privacy.
The lawyers representing Coinbase defended their request by referring to Gensler’s prominent position on cryptocurrency regulation and his personal opinions.
This argument is a component of a continuing legal conflict between the SEC and Coinbase, which commenced last year when the SEC filed a lawsuit against the exchange for engaging in operations without appropriate registration.
Recently, the US Department of Justice’s asset forfeiture section, known as the US Marshal Service, has selected Coinbase as its custodian for digital assets with high market cap.
