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August 14, 2024

Coinbase Wants SEC To Produce Documents That Could Expose Regulator’s Inconsistent Views on Digital Assets

By Conor Devitt

Coinbase wants the U.S. Securities and Exchange Commission (SEC) to produce documents related to its regulatory decision-making processes surrounding several digital assets.

The top US crypto exchange has asked a judge to order the regulator to search for and produce documents related to its previous communication with crypto issuers.

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Coinbase also argues that the SEC needs to do a better job of logging the documents it withholds.

“Coinbase will work in good faith to agree on a reasonable search protocol, but the incremental burden of logging relevant documents withheld after review is minimal and largely automated; the SEC should not be excused from it.”

Paul Grewal, Coinbase’s chief legal officer, says the request addresses the SEC’s “inconsistent views” on crypto and its own regulatory authority.

“Does a defendant to a suit by its own government deserve transparency about the facts of the case? We think the answer is obviously yes and appreciate the Court’s consideration.”

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The SEC first sued Coinbase in June 2023 for allegedly violating securities laws, including selling unregistered securities and operating an unregistered exchange/broker agency.

In June, Coinbase filed a counter-lawsuit against the SEC, as well as the Federal Deposit Insurance Corporation (FDIC), accusing the regulators of acting outside their jurisdiction, attempting to “cripple” the crypto industry and avoiding Freedom of Information Act (FOIA) requests.

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