Coinbase files FOIA request to uncover SEC’s crypto lawsuit spending

Coinbase has submitted a Freedom of Information Application (FOIA) to the Securities and Exchange Commission (SEC) to find out how much the regulator spent on crypto lawsuits under Gary Gensler. The exchange’s chief legal counsel, Paul Grewal, disclosed this on X.

In the post that tagged Elon Musk-led Department of Government Efficiency (DOGE), Grewal explained that the application seeks full details on the number of enforcement actions and investigations the SEC instituted against crypto entities and how much the agency spent on them.

It further requests that the SEC provide information on the number of its employees who worked on these investigations and lawsuits and the third-party contractor that the agency hired for those investigations.

According to Grewal, this will allow the public to fully know the extent of the cost of the SEC’s fight against the crypto sector.

He said:

“We know the previous @SECgov’s regulation-by-enforcement approach cost Americans innovation, global leadership, and jobs, but how much did it cost in taxpayer dollars?”

Meanwhile, Coinbase also seeks information about the SEC’s Crypto Assets and Cyber unit. This department, which has now been scrapped, was under the Enforcement Division and reportedly responsible for the various legal actions against crypto firms.

Coinbase claims FOIA is a fight for transparency

Multiple reactions have followed the Coinbase request. While many believe it is a good step, some in the crypto community consider it an unnecessary stunt and asked Coinbase to serve its customers better. They noted that it does not achieve any purpose, and the SEC’s new administration should be allowed to focus on more important issues.

However, Grewal explained that its request for the information only highlights its quest for transparency from government agencies that regulate the crypto industry. The company has earned a reputation for standing with the crypto industry against SEC enforcement actions.

He said:

“We’ll never stop fighting for government transparency on behalf of our customers and this industry. It may take time to get the full picture, but I think we’ve shown that we will do what it take for as long as it takes.”

Nevertheless, the application highlights the drastic change in how the SEC regulates the crypto industry. Coinbase is in the middle of a victory run after the SEC dropped the lawsuit against the exchange and terminated all pending litigation.

The decision, which ended over two years of litigation between the SEC and Coinbase, marked a new beginning at the SEC, during which the regulator is expected to be more receptive to the crypto sector.

Since dropping the Coinbase lawsuit, the SEC has dropped other lawsuits against crypto entities, including Kraken exchange and MetaMask wallet developer Consensys. The regulator is expected to drop pending litigation against Binance and Tron, with the regulator already pausing the two cases to find a resolution with the parties.

However, the lawsuit that everyone will be watching to see how the SEC proceeds is its case against Ripple over the status of XRP. The lawsuit, which started in 2020, is already on appeal.

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