Coinbase Demands SEC Spending Records

As the smoke clears on its newly dropped enforcement case, Coinbase is demanding the U.S. Securities and Exchange Commission (SEC) disclose its spending records related to investigations and actions against the crypto industry in recent years.

The largest U.S. cryptocurrency exchange is filing a Freedom of Information Act (FOIA) request through its contractor, History Associates Inc., to obtain accounting records of the SEC’s enforcement campaign concerning digital asset businesses. The request seeks:

• Total costs for investigations and enforcement actions over the past four years
• A list of targeted companies
• The number of employees and contractors involved in these cases
• Financial information regarding the previous leadership’s crypto enforcement unit

Following President Donald Trump’s inauguration, the SEC has undergone a management change with Commissioner Mark Uyeda now acting as chairman. Uyeda initiated a significant shift in the agency’s approach to cryptocurrencies, ending investigations and dismissing ongoing court cases, including one against Coinbase itself.

“We’re asking the SEC to produce this information voluntarily and subject to their FOIA obligations, without making Coinbase or anybody else have to go to court to get what we think the American people deserve to know,” stated Coinbase Chief Legal Officer Paul Grewal in an interview with CoinDesk.

Coinbase has previously engaged the SEC in federal court concerning public-records disputes, and it continues to pursue the disclosure of communications related to the regulator’s internal discussions on cryptocurrency oversight.

Despite the SEC’s easing of enforcement actions against digital asset businesses, there are calls within the industry for the agency to be held accountable for its prior handling of the sector under Chair Gary Gensler, including demands for the termination of staff involved. However, Grewal has insisted that this records request is not retaliatory but rather a necessary step toward transparency.

“This is not just about Coinbase or anybody else taking a victory lap or trying to rub the SEC or anybody else’s nose in their admission that the last four years were a mistake. This is much more about learning the lessons of history so that we never have to repeat them,” Grewal asserted.

While the public has the right to access government documents, obtaining them can involve complex agency hurdles, often resulting in lengthy delays. The SEC can cite exceptions for ongoing cases, particularly concerning firms like Kraken, Ripple, and Crypto.com. Nevertheless, Grewal advocates for the availability of records on closed cases like Coinbase’s and those of other firms receiving favorable outcomes recently.

“Let’s get the facts on the table. Let’s tally up what the costs were. Let’s consider whether there were some benefits that ought to be measured as well. And then let’s decide, is this what we want for our country and for our economy, and how do we craft rules to make sure that this doesn’t happen again?” Grewal voiced.

Read More: U.S. Regulator Told Banks to Avoid Crypto, Letters Obtained by Coinbase Reveal