Coinbase Demands Transparency: FOIA Request Seeks SEC's Crypto Enforcement Costs

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 determine the number of investigations and enforcement actions taken against crypto firms between April 17, 2021, and January 20, 2025. The exchange also seeks information on the number of employees and third-party contractors involved in these enforcement actions, as well as the total cost to taxpayers.

Grewal noted that the previous SEC's "regulation-by-enforcement" approach had cost Americans innovation, global leadership, and jobs, and he sought to understand the financial implications of this approach. He also expressed interest in learning more about the SEC's Crypto Assets and Cyber Unit, which was replaced by the Cyber and Emerging Technologies Unit (CETU) in February 2023.

Coinbase's FOIA request follows a series of lawsuits and investigations initiated by the SEC against crypto firms during Gensler's tenure. In June 2023, the SEC sued Coinbase, alleging that the exchange had never registered as a broker, national securities exchange, or clearing agency. However, the action was later dropped on February 27, 2025, with the SEC agreeing to voluntarily dismiss all litigation tied to Coinbase and Coinbase Global with prejudice.

The SEC has also recently ended its investigations into several other crypto firms, including Kraken, Yuga Labs, Gemini, Uniswap Labs, and Robinhood Crypto. These developments suggest a shift in the SEC's approach to crypto regulation under the new administration of President Donald Trump, who had promised to fire Gensler during his campaign.

The crypto industry eagerly awaits the results of Coinbase's FOIA request, as the information could provide valuable insights into the SEC's enforcement efforts and the potential impact on taxpayers. As the regulatory landscape continues to evolve, crypto firms and investors alike will be watching closely for any signs of a more cooperative or lenient approach from the SEC.