Coinbase Narrows Subpoena to SEC Chair Gary Gensler Amid Legal Battle

• Coinbase narrows the subpoena to focus on SEC Chair Gary Gensler’s communications during his tenure, which aligns with Judge Failla’s guidance.
• SEC lawsuit claims Coinbase listed 13 unregistered securities since 2019; Coinbase argues tokens fall outside SEC regulations.
• Bank of America and KBW upgraded Coinbase’s price target, reflecting investor confidence despite ongoing legal battles.

Coinbase has refined its subpoena to focus solely on communications from Gary Gensler’s tenure as the SEC Chair. Initially, the exchange sought Gensler’s private communications spanning his entire professional history. This change follows Judge Katherine Polk Failla’s reservations about the original request.

Coinbase’s legal team originally argued that accessing Gensler’s communications, both before and during his SEC Chairmanship, was crucial for their defense. However, the revised subpoena now targets only the period of his chairmanship, starting from April 2021. This decision aligns with the specific timeframe of Gensler’s current role.

Initially, Coinbase aimed to access Gensler’s communications dating back to 2017. They believed this would provide insight into his evolving views on crypto regulation. However, Judge Failla expressed concerns about the extensive burden of such a broad request. Consequently, Coinbase adjusted its approach to focus on a narrower scope.

Upcoming Legal Deadlines and SEC Allegations

The SEC has until August 5 to respond, and Coinbase has until July 23 to submit its opening brief in support of the move to compel. The SEC filed a lawsuit against Coinbase in June 2023. The SEC alleges Coinbase violated federal securities laws by listing 13 cryptocurrencies that it considers to be securities. Nearly two years before its initial public offering (IPO), Coinbase has been operating as an “unregistered securities broker” since 2019, according to the SEC.

According to the company, tokens featured on Coinbase’s exchange are free from SEC regulations and don’t fall under the securities category. Coinbase asserted that the FDIC and SEC had improperly denied its document requests. These regulators conceal information that the Freedom of Information Act requires to be made public (FOIA).

Analysts’ Upgraded Ratings Reflect Investor Confidence

Furthermore, Bank of America (BAC) raised its underperforming to neutral rating on Coinbase shares. BAC raised its price target for Coinbase from $110 to $217. Furthermore, investment banking firm KBW also increased its Coinbase price target. KBW raised its target from $160 to $230, maintaining its market performance rating.

Moreover, these positive ratings reflect growing confidence in Coinbase despite ongoing legal challenges. The adjustments in price targets from major financial institutions suggest a more optimistic outlook.