Judge Critiques Coinbase Gensler Subpoena Effort in SEC Case
Highlights
- Judge calls Coinbase's subpoena of SEC Chair's communications 'fatuous' and potentially inappropriate.
- SEC argues Coinbase's demands for Gensler's prior communications irrelevant, setting troubling precedent.
- Coinbase urged by judge to modify subpoena effort, seek documents via formal SEC channels instead.
A hearing in the case of SEC v Coinbase occurred on Thursday, during which Judge Katherine Polk Failla had concerns about the Coinbase motion to seek the personal communication of Gary Gensler, the Chairman of the US Securities and Exchange Commission (SEC).
The judge noted that the request was unexpected and possibly improper in the given context.
Coinbase Subpoena Effort Surprises Judge
The hearing, which was held on short notice, centered on the SEC’s motion to quash a Coinbase subpoena served on Gensler. Judge Failla started by expressing her astonishment at the request for Gensler’s communications, both prior to and during his time as the SEC Chairman.
Judge opens up by saying she was "surprised" and "not in a good way" by Coinbase's effort and response to the SEC's effort to quash the subpoena against Gary Gensler
— @[email protected] (@nikhileshde) July 11, 2024
She said that Coinbase’s reasons for seeking the subpoena were ‘fatuous’ particularly on the aspect of Gensler’s past comments prior to his appointment.
Kevin Schwartz, an attorney from Coinbase, stated that Gensler’s background and past statements were significant for the case. However, the judge dismissed this as inconsequential, especially the demands for information before Gensler’s tenure as chairman.
SEC’s Response to Subpoena Request
Jorge Tenreiro, an SEC senior trial attorney, opposed Schwartz’s claims, saying that the subpoena was irrelevant and could pose a dangerous precedence. Tenreiro pointed out that the case concerns Coinbase’s actions, not Gensler’s statements as a private person or a scholar.
He emphasized that Gensler is neither a fact witness, nor an expert witness which further reduces the need for a subpoena.
As for the SEC’s position, the commission stated that to obtain any relevant information, a request should be made to the SEC, not its employees. They asserted that the subpoena was an unjustified invasion of Gensler’s personal and pre-SEC work life.
Judge’s Guidance and Future Proceedings
Judge Failla suggested that Coinbase should rethink or at least change its subpoena application significantly. She recommended that Coinbase should file a motion to compel, which would allow for proper briefing in relation to the matter.
The judge encouraged the parties to cooperate more effectively and try to address the discovery issues without undue judicial involvement.
Coinbase first sent document requests to the SEC in April and later focused on Gensler’s communication, including those made prior to his time at the SEC. The exchange pointed out that these communications are important to consider the overall regulatory environment and the personal opinion of Gensler, which may shape the outcome of the case.
Read Also: Suspicious Justin Sun Bitcoin (BTC) Bet Flagged By CryptoQuant Founder
- Hyperliquid DEX Outperforms Top Crypto Exchanges Coinbase, Binance, Robinhood With Zero Downtime
- Crypto Market Loses $670 Billion on CEX Auto Liquidations, Altcoins Crash Intensifies
- Crypto Market Crash With 100% Trump Tariff Announcement on China
- ASTER Airdrop Delayed to October 20 Amid Criticisms Over Token Allocations
- U.S. Inflation Data: BLS to Release CPI Report on October 24 Amid Government Shutdown
- Bitcoin Price Prediction as Trump’s Tariff Shock Triggers $19B Liquidation
- Can $TAPZI Reach $1 In Q1 2026?
- Here’s Why XRP Price May Have a Zcash-Like Surge
- $TAPZI Price Prediction: What’s Ahead of the $TAPZI token Presale?
- Cardano Price Targets $2 as Hydra 1.0 Ignites New Era of Speed and Adoption
- Dogecoin Price Prediction as $23M Leaves Exchanges—Is the Parabolic Phase Beginning?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
