Coinbase Seeks SEC’s Spending on Crypto Industry Investigations Under Gary Gensler
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Key Takeaways:
- Coinbase has submitted a FOIA request to reveal the SEC’s spending on crypto investigations and enforcement.
- The inquiry seeks detailed budget, staffing, and resource allocation information.
- The move looks to boost transparency and prompt debate over regulatory practices affecting innovation.
U.S. cryptocurrency exchange Coinbase submitted a Freedom of Information Act (FOIA) request on Monday, March 3, 2025, requesting information on the Securities and Exchange Commission’s (SEC) spending on crypto-related enforcement over the past four years.
The filing specifically requests information on the agency’s financial and human resource allocation for investigating and prosecuting digital asset firms.
Coinbase Files FOIA Request Seeking SEC’s Crypto Enforcement Expenses
The request follows years of legal disputes between Coinbase and the SEC over crypto regulations and enforcement practices.
Coinbase previously sued the SEC to obtain internal communications about the agency’s approach to digital assets.
Now, after the SEC recently dismissed its case against the exchange, Coinbase is pressing for transparency on the broader cost of the regulator’s crackdown on the industry.
The exchange, through contractor History Associates Inc., is requesting records on enforcement expenses, targeted firms, and staff involved.
The filing also seeks financial records on the management of the agency’s crypto enforcement unit under its previous leadership.
Under acting Chairman Mark Uyeda, appointed by President Donald Trump, the SEC has dropped several cases and restructured its legal team.
Coinbase’s Chief Legal Officer, Paul Grewal, insists the request isn’t retaliatory but a call for accountability.
“We’re asking the SEC to produce this information voluntarily under FOIA, without forcing Coinbase or anyone else to go to court,” Grewal said.
While FOIA allows public access to government records, agencies often delay or withhold information, citing exemptions. The SEC may argue that ongoing cases like those against Kraken, Ripple, and Crypto.com limit what can be disclosed.
However, Grewal believes past enforcement records should be public now that many cases, including Coinbase’s, have been dismissed.
“Let’s get the facts on the table,” says Grewal “Let’s tally up the costs, weigh any benefits, and decide if this is the approach we want for our economy.”
The SEC has not yet publicly responded to Coinbase’s request.
Trump’s SEC Takes a Softer Approach to Crypto Enforcement
Under President Donald Trump, the shift in U.S. crypto regulation is becoming clearer.
His administration has taken an industry-friendly stance, easing enforcement actions that marked the previous term.
This approach contrasts sharply with the previous administration’s policies.
Under former President Joe Biden, the SEC and CFTC filed over 100 lawsuits against crypto firms, targeting major players like Kraken, Coinbase, and Ripple for alleged violations
Trump’s approach has already led to major changes as the SEC has begun scaling back enforcement.
Recent SEC filings indicate that the agency is reconsidering its stance on crypto, dropping cases against Consensys, Robinhood, Gemini, Uniswap, and OpenSea.
The new direction became evident when, on January 21, one day after Trump’s inauguration, the SEC formed a Crypto Task Force led by Commissioner Hester Peirce.
Over the past week, the task force has met with key industry players, including the Crypto Council for Innovation, Zero Hash, Paradigm, and Michael Saylor.
These discussions focused on re-evaluating the SEC’s stance on crypto assets, with many advocating for a reconsideration of whether cryptocurrencies should be classified as securities.
As the commission continues reviewing its cases, the industry is watching closely to see if more enforcement actions will be reversed.
The industry leaders are optimistic that further regulatory clarity and fewer enforcement actions could follow.
Frequently Asked Questions (FAQs)
Coinbase filed the FOIA to expose the hidden taxpayer costs behind SEC crypto enforcement. They aim to clarify if the agency’s heavy-handed tactics actually protect investors or simply stifle industry growth.
Revealing SEC crypto spending could spark a regulatory reset. Lawmakers may reexamine enforcement tactics and craft balanced rules that both protect investors and promote innovation, forcing a fresh policy shift.
Releasing detailed crypto enforcement costs could drive lasting reforms. With clearer data, regulators and lawmakers might craft fair rules that foster sustainable growth and ultimately boost market confidence.
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