SEC Hits Back at Coinbase's Subpoena Requests, Asks Court to Deny it

The US Securities and Exchange Commission (SEC) has gone running to a federal judge to complain about Coinbase's subpoena.

In court documents filed on Monday, the SEC described Coinbase's subpoena requests as "breathtakingly broad" and criticized the exchange for their search of “essentially all documents that in any way relate to crypto.”

In June, Coinbase told the SEC that it planned to subpoena SEC Chair Gary Gensler's personal communications related to crypto over the duration of his term as chair, as well as four years before his appointment.

Later that month, the SEC described the subpoena request as an "improper intrusion" into Gensler's private life.

Coinbase then responded on 3 July by saying the subpoena was valid because Gensler is "not only the most prominent regulator but also the most vocal academic commentator, concerning the regulatory status of digital assets and exchanges."

Judge Katherine Polk Failla, of the District Court for the Southern District of New York, said she was "sort of surprised and not in a good way" about Coinbase's subpoena request. The Judge then told Coinbase to file a motion to compel for a formal proceeding, through which both parties can state their arguments in more depth.

In an updated filing, Coinbase adjusted its subpoena to only seek communications during his term following the judge's reluctance.

“With respect to the subpoena to Mr. Gensler, Coinbase has determined to seek the production of Mr. Gensler’s documents only for the period of his tenure as Chair of the SEC,” Coinbase stated.

The SEC is nonetheless claiming that the request for Gensler's personal communications is a “blatant impropriety" and has asked Faila to reject Coinbase's request.