Coinbase Demands SEC Transparency: Crypto Enforcement Spending Revealed

Coinbase, a leading U.S. cryptocurrency exchange, has submitted a Freedom of Information Act (FOIA) request to the Securities and Exchange Commission (SEC) seeking detailed information on the agency's spending on crypto-related enforcement over the past four years. The request, filed on March 3, 2025, follows years of legal disputes between Coinbase and the SEC over crypto regulations and enforcement practices.

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. Coinbase's Chief Legal Officer, Paul Grewal, insists the request isn't retaliatory but a call for accountability.

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, which saw the SEC and CFTC file over 100 lawsuits against crypto firms. Trump's approach has already led to major changes as the SEC has begun scaling back enforcement, dropping cases against several prominent crypto companies.

On January 21, one day after Trump's inauguration, the SEC formed a Crypto Task Force led by Commissioner Hester Peirce. The task force has met with key industry players to re-evaluate 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.

Coinbase's FOIA request challenges the SEC to disclose its crypto enforcement spending, spotlighting years of regulatory tension. This move comes from the broader shift in U.S. crypto policy under new leadership and raises questions about past practices and future direction. Revealing SEC crypto spending could spark a regulatory reset, forcing a fresh policy shift and driving lasting reforms that foster sustainable growth and ultimately boost market confidence.