- Coinbase submitted an FOIA request to uncover the SEC’s costs in crypto enforcement actions.
- The exchange seeks details on SEC investigations, staffing, and financial expenditures.
- In February 2025, the SEC voluntarily dismisses lawsuit against Coinbase, ending the case.
Coinbase is seeking transparency from the U.S. SEC regarding the costs of its enforcement actions against crypto firms. On March 3, the exchange filed a Freedom of Information Act (FOIA) request. The request seeks details on the SEC’s spending on crypto-related investigations from April 2021 through early 2025.
Details of SEC Investigations
Coinbase’s request aims to uncover the number of investigations and enforcement actions against crypto firms during this timeframe. The company is also requesting data on the number of SEC employees and third-party contractors involved in these cases. In addition, Coinbase is looking to uncover the total financial cost of these actions. Grewal argues that taxpayers deserve transparency on how their money has been allocated to crypto-related enforcement.
The request also covers the SEC’s Crypto Assets and Cyber Enforcement Unit, which was originally established in 2017. This unit investigated fraudulent crypto offerings and unregistered platforms. Grewal asks for details about the unit’s budget, staffing, and cost of employee hours. He believes this will help shed light on the SEC’s regulatory approach toward the crypto industry.
Related: ARK Invest Bets $8.7M on Coinbase, Sells $8.6M Bitcoin ETF
Historically, under former chair Gary Gensler, the SEC has been very aggressive regarding regulating cryptocurrencies. During Gensler’s tenure at the SEC, the agency has obtained over a hundred enforcement actions against several crypto companies.
Lawsuit Against Coinbase Dropped
Gensler resigned on January 20, 2025, coinciding with the start of a new U.S. presidential term. Since Gensler’s departure, the SEC has reassessed its enforcement approach, withdrawing some high-profile lawsuits.
In June 2023, the SEC filed a lawsuit against the exchange, stating that it failed to register as a broker, national securities exchange, and clearing agency. However, in February 2025, the SEC agreed to dismiss the case with prejudice. This means the case is permanently closed, and the SEC cannot refile charges against Coinbase.
