Lawrence Damilola
Coinbase has petitioned a federal court to compel the Commodity Futures Trading Commission (CFTC) to disclose communications with several cryptocurrency token issuers. The exchange seeks this information to defend against a lawsuit from the Securities and Exchange Commission (SEC), which alleges that Coinbase sold unregistered securities.
According to a motion filed on Tuesday, Coinbase is asking for the CFTC’s communications with the issuers of 12 cryptocurrencies that the SEC claims are unregistered securities. “This information is critical to Coinbase’s ability to defend itself against the allegations,” the company stated in its filing. The exchange also requested documents regarding the CFTC and SEC’s regulatory authority over digital assets.
Coinbase revealed that it had issued a subpoena to the CFTC in July after a prior attempt with a broader subpoena in June. The exchange noted that its first request was denied by the CFTC, which cited reasons such as “overbreadth, burden, and privilege.” Coinbase stated that the CFTC “has stonewalled” its requests and that the regulator “hasn’t even conducted a single search.”
CFTC’s Response to Subpoena Requests
The CFTC reportedly rejected the first subpoena because it was “overly broad and burdensome.” Coinbase noted that the CFTC “stated its willingness to reevaluate the subpoena if it were narrowed,” leading to a second, more focused request. However, this subpoena was also denied, with the CFTC claiming it was still “overly broad, vague, and would place an undue burden on the Commission.”
In its motion, Coinbase argued that the CFTC has not justified its claims of burden and that “no conceivable privilege could apply to them,” as the communications involved external parties. The exchange emphasized that both the SEC and CFTC have engaged with digital asset issuers in recent years to understand the regulatory environment better.
The SEC’s lawsuit, filed in June 2023, names 13 tokens as unregistered securities, including Solana, Cardano, and Polygon. Coinbase maintains that it requires access to CFTC communications to determine whether these tokens meet the definition of securities.
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Lawrence does not hold any crypto asset. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
