The Coinbase is rising its dispute with US regulators in previous communications involving former Securities and Exchange Commission chair Gary Gensler.
Coinbase filed a legal motion on Thursday asking for a hearing to meet the SEC Office of the Inspector General’s Investigation, which found that the agency had removed nearly a year’s worth of text messages from Gensler and other older officials in “preventable” errors.
The exchange says the SEC should explain why it does not perform a full search of agency records, including Text messages from Gensler and senior SEC officials, when he requested messages to many filings of the Freedom of Information Act (FOIA) from 2023 and 2024.
According to the movement, Coinbase wants the court to force the SEC to search and produce all responsive communications originally requested, including all messages and documents from the Gensler and the agency about Ethereum’s move in consent of proof-of-stake (POS). The filing of FOIA Read:
This court’s intervention was warranted to determine if the SEC was in fact violated by previous court orders and to ensure that all available steps were taken to maintain and produce responsive notes. “
The exchange also suggested an additional hearing after being produced and examined the materials during legal discovery to meet additional remedies such as attorney fees, if necessary.
“Following the discovery, the parties may return to the court, and the court will determine the appropriate additional remedies at that time,” including the findings that “will intervene a special advice investigation.”
The speaker for the SEC told cointelegraph that transparency was “most important” in the agency’s operations and responsibilities to taxpayers.
“When Chairman Atkins was briefed in this regard, he immediately appointed the staff to review and fully understand what had happened and took steps that would prevent this from happening again,” said SEC spokesperson.
Crypto companies have long demanded transparency from the SEC about communication related to Implementing Actions against Crypto projectsled to a release of companies from the US.
Related: The SEC Chair says most tokens are not security, backs ‘super-app’ platform
The SEC has wiped the nearly one year amount of messages Coinbase sought
The SEC has lost nearly one year of Gensler’s text messages from October 2022 to September 2023, according to a SEC Inspector General investigation Report.
Gensler’s messages were automatically deleted by the SEC Information Technology Department before the messages could be back, according to the investigation.
The Sec sued coinbase In 2023, allegedly the exchange violated US security laws by acting as an unlicensed securities broker, a claim provided by the SEC against many crypto companies during Gensler’s term.
In response, Coinbase petitioned the US courts to force the SEC to I -hand Gensler’s private email messagesIt is upheld that the personal communication of the SEC Chair would be a significant source of discovery for its legal battle with Sec.
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