Coinbase Demands Transparency: FOIA Request Seeks SEC's Crypto Enforcement Costs
1min read Coinbase, a leading cryptocurrency exchange, has filed a Freedom of Information Act (FOIA) request to uncover the extent of the U.S. Securities and Exchange Commission's (SEC) enforcement actions against crypto firms and the associated costs. The move comes as the crypto industry seeks clarity on the regulatory landscape following a period of intense scrutiny under the previous SEC chair, Gary Gensler.
In a statement, Coinbase's chief legal officer, Paul Grewal, revealed that the FOIA request was submitted to the SEC to gain insights into the number of investigations and enforcement actions taken against crypto firms between April 17, 2021, and January 20, 2025. The exchange also aims to discover the number of employees and third-party contractors involved in these enforcement actions, as well as the total cost incurred.
Grewal emphasized the importance of understanding the financial impact of the SEC's regulatory approach on taxpayers and the broader crypto industry. He expressed a commitment to pursuing the information, stating that coinbase is prepared to invest the time and resources necessary to obtain the requested data.
The SEC's Crypto Assets and Cyber Unit, established in 2017, was responsible for enforcing regulations against fraudulent and unregistered crypto asset offerings and platforms. The unit was recently replaced by the Cyber and Emerging Technologies Unit (CETU) on February 20. Coinbase's FOIA request seeks information about the budget, employee count, and associated costs of the previous unit.
Gensler, known for his hardline stance on crypto regulation, resigned from his position as SEC chair on January 20, 2025. During his tenure, the SEC took an aggressive approach to regulating the crypto industry, bringing upward of 100 regulatory actions against firms. Following Gensler's departure, the SEC has opted out of several lawsuits against crypto companies, including Coinbase, Kraken, Yuga Labs, and Gemini.
The SEC's lawsuit against Coinbase, alleging the exchange failed to register as a broker, national securities exchange, or clearing agency, was voluntarily dismissed on February 27, 2025. The dismissal was made with prejudice, permanently ending the case. The SEC has also recently ended its investigations into Uniswap Labs and Robinhood Crypto.
The crypto industry is now looking ahead to a potential shift in regulatory approach 