Bitrabo Editorial
The feud between Coinbase (NASDAQ: COIN) and the US Securities and Exchange Commission (SEC) entered a new phase as Coinbase submitted a Reply Memorandum of Law on August 12, urging the SEC to disclose internal documents in a bid to fulfill discovery obligations.
The SEC had previously contested Coinbase’s request, including the release of personal crypto-related emails from SEC chairman Gary Gensler, labeling the demands as excessively broad and burdensome in a memorandum to the Southern District Court of New York.
Coinbase Asserts Position
Coinbase’s response lambasted the SEC for not thoroughly searching non-Enforcement Division personnel documents, such as those from SEC Commissioners and the Division of Trading and Markets. It criticized the SEC for delaying the preparation of a preliminary ‘hit report,’ which is crucial for informed discovery discussions.
The filing accused the SEC of being selective in its document search process, exaggerating the burden of production by four times. Coinbase highlighted the importance of reviewing documents outside the Enforcement Division, citing the relevance of communications in previous legal cases like Ripple.
A major bone of contention is the SEC’s refusal to investigate if Chair Gensler uses his personal email for case-related communications. Coinbase stressed the significance of Gensler’s potential personal communications, arguing that the SEC’s avoidance of this inquiry is unwarranted.
Coinbase also criticized the SEC for downplaying the importance of documents that could support its fair notice defense. It demanded the SEC to document all reviewed and withheld documents as directed by a court order, underlining the need for transparency in the legal process.
COIN was trading at $191.74 at the time of reporting.