Coinbase Chief Legal Officer Paul Grewal has accused the U.S. Securities and Exchange Commission (SEC) of using delaying tactics to obstruct Coinbase’s request for crucial documents in its legal battle against the regulator.
Coinbase chief legal officer Paul Grewal has accused the U.S. Securities and Exchange Commission (SEC) of using delaying tactics to obstruct Coinbase’s request for crucial documents in its legal battle against the regulator.
Grewal’s allegations against the SEC
In a recent post on X, Grewal inferred that the SEC was afraid of losing to Coinbase, having suffered losses in the recent Chevron case. According to the US Supreme Court ruling, it is the courts, not the regulatory agency, that can interpret the laws that guide the crypto industry.
Alex DovbnyaAccording to Grewal, the SEC was engaged in antics aimed at preventing the release of documents that would help Coinbase prove its case against the agency. Grewal wrote: “And now, late Friday, more hurdles from the US SEC to prevent Coinbase from obtaining documents from Gary Gensler in our litigation.”
Despite these alleged delaying tactics, Coinbase CLO said the company remains determined to address this issue in court. Grewal emphasized the importance of these documents to his case and is confident the court will grant his request.
In the post, Grewal shared a link for those interested in the filed motion and all related allegations in Coinbase’s litigation against the SEC.
Historical context and relevance of Gensler’s claims
According to Grewal, in March 2021, Chairman Gary Gensler informed Congress that the SEC did not have regulatory authority over digital asset exchanges.
Gensler, on that occasion and several others, concurred with market participants’ belief that transactions on these exchanges were beyond the scope of securities laws. According to Grewal’s claims, Gensler, a prominent blockchain technology professor, reiterated this stance on several occasions, both publicly and to market participants, including while serving as SEC chairman.
Alex DovbnyaTherefore, Coinbase has requested that Gensler provide documents related to these communications. In the legal team’s opinion, the communication will demonstrate that the SEC’s enforcement actions violate constitutional requirements of due process.
However, the SEC and Gensler have resisted these requests, aiming to keep the documents hidden.
