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Paul Grewal, Chief Legal Officer of Coinbase, has accused the U.S. Securities and Exchange Commission (SEC) of employing delaying tactics to hinder Coinbase’s request for crucial documents in its legal battle against the regulatory body.
Grewal’s allegations against SEC
In a recent post on X, Grewal inferred that the SEC was scared of losing to Coinbase, having suffered losses in the recent Chevron case. Per the U.S. Supreme Court ruling, it is the courts, not the regulatory agency, that can interpret the laws guiding the crypto industry.
According to Grewal, the SEC was engaged in antics meant to prevent the release of documents that would aid Coinbase in proving its case against the agency. Grewal wrote, “And now, late on a Friday, more stonewalling from US SEC to stop Coinbase from obtaining documents from Gary Gensler in our litigation.”
Despite these alleged delay tactics, Coinbase CLO said the firm remains determined to address this issue in court. Grewal emphasized the importance of these documents for their case and is confident the court will grant its request.
In the post, Grewal shared a link for those interested in the filed motion and all related pleadings in Coinbase’s litigation against the SEC.
Historical context and relevance of Gensler’s statements
According to Grewal, back in March 2021, Chairman Gary Gensler informed Congress that the SEC did not possess regulatory authority over digital asset exchanges.
Gensler, on that occasion and several others, aligned with market participants’ belief that transactions on these exchanges were beyond the scope of securities laws. Per Grewal’s claims, Gensler, a notable blockchain technology professor, reiterated this stance on various occasions, both publicly and to market participants, even while serving as SEC chair.
Hence, Coinbase has requested that Gensler provide documents related to these communications. In the legal team’s view, the communication will demonstrate that the SEC’s enforcement actions violate constitutional due process requirements.
However, the SEC and Gensler have resisted these requests, aiming to keep the documents concealed.
