Crypto exchange Coinbase has refined its subpoena request directed at Gary Gensler, the Chair of the United States Securities and Exchange Commission (SEC). Initially, Coinbase sought access to both current and past private communications of SEC Chair Gary Gensler. However, after Judge Katherine Polk Failla expressed reluctance, a filing on July 15 indicates that Coinbase will now only request records from Gensler’s tenure starting in April 2021.

Legal representatives for Coinbase had initially argued that Gensler’s private chats, dating back to 2017, could provide essential insights for their defense. They believed this information could demonstrate how his views on crypto regulations have evolved. Gensler, before his appointment, was involved in teaching a “Blockchain and Money” course at the Massachusetts Institute of Technology in 2018.

Judge Failla, however, expressed strong concerns regarding the excessive burden of probing into Mr. Gensler’s statements prior to his tenure as chair. Coinbase is expected to submit its opening brief to compel document production on July 23, with the SEC set to respond by Aug. 5.

In June 2023, the SEC accused Coinbase of violating federal securities laws by listing 13 tokens it deems as securities, branding the platform as an “unregistered securities broker” since 2019.

Despite these charges, Coinbase contends that the tokens listed do not qualify as securities and therefore, should not fall under SEC regulations. The exchange has also accused the agency and the Federal Deposit Insurance Corporation (FDIC) of obstructing their requests for documents under the Freedom of Information Act (FOIA).

Amid these legal complexities, Coinbase’s stock prospects seem to be improving. Recently, Bank of America upgraded its rating on Coinbase shares from underperform to neutral, with a new price target of $217, up from $110.

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