- Coinbase urges the CFTC to produce communications with issuers of the 12 tokens mentioned in the SEC lawsuit.
- The exchange believes that the documents will be crucial in determining the tokens’ regulatory status.
- The court previously ordered the SEC and FDIC to submit relevant documents in response to Coinbase’s motion.
In a new development in its ongoing legal battle with the SEC, Coinbase has filed a motion requesting the Commodities Futures Trading Commission (CFTC) to hand over communications with issuers of 12 tokens named in the lawsuit. The exchange believes these documents could be crucial to its defense against SEC allegations that these tokens are unregistered securities.
Coinbase Chief Legal Officer Paul Grewal announced the motion on October 2nd via an X post, stating that the filing was made in the Southern District of New York (SDNY).
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On September 5, US Judge Katherine Polk Failla ordered the disclosure of the SEC’s communications with the 12 token issuers. The judge’s order came in response to Coinbase’s motion to compel, ordering the SEC to produce “a large number of internal memorandum and other documents reflecting the SEC’s Howey analysis.” Throughout the lawsuit, the SEC has said Coinbase was offering these tokens in violation of compliance laws. The agency claimed that these tokens are unregistered securities under the Howey Test.
Coinbase now wants the CFTC to provide critical documents showing communication with the token issuers. Grewal believes that these documents are important for determining the status of the tokens in question. The exchange says the documents could help determine if the tokens are investment contracts. The motion argues that the CFTC’s discussion with the issuers could reveal details about the regulatory status of the tokens.
Read also: Coinbase vs. SEC FDIC: ‘Intrepid Detective’ Grewal Digs Deeper
In other news, Coinbase has filed lawsuits against the SEC and FDIC for what it claims is a crypto crackdown. The exchange accused the agencies of intentionally isolating crypto platforms from the broader financial ecosystem. Previously, the court ordered the FDIC to provide a “Vaughn Index,” a detailed record of documents, and Coinbase is expecting a similar development in this motion.
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