Coinbase Battles SEC: Revealing Crypto Spending Secrets in Epic FOIA Fight

Coinbase Seeks Transparency on SEC’s Crypto Enforcement Costs

coinbase has submitted a Freedom of Information Act (FOIA) request too the U.S. Securities and Exchange Commission (SEC). the aim is to reveal the SEC’s spending on non-fraud crypto investigations and enforcement actions.This request covers the period from April 2021 to January 2025.

Paul Grewal, Coinbase’s chief legal officer, wants to no the costs of thes regulatory actions. he seeks details on investigation specifics, employee hours, pay, and budget allocations. Grewal believes this transparency is crucial as the SEC transitions to new leadership.

Coinbase questions the financial impact of the SEC’s regulatory approach on taxpayers. Grewal wrote on X, “We know the previous SEC’s regulation-by-enforcement approach cost Americans innovation, global leadership, and jobs. But how much did it cost in taxpayer dollars?”

the FOIA request focuses on the SEC’s Crypto Assets and Cyber Unit. Coinbase wants to know the unit’s budget, employee count, and labor costs related to crypto investigations.

Coinbase’s request also references the SEC’s congressional reports. The exchange seeks documents detailing expenditures on digital asset investigations and enforcement actions. This includes actions related to digital asset offerings, secondary market transactions, staking, and lending.

Coinbase aims to determine if the SEC’s enforcement tactics were justified or if they stifled crypto innovation. The company has been a vocal critic of the SEC’s stance on cryptocurrency regulation. it advocates for clear, industry-specific guidelines rather than enforcement-driven oversight.

Grewal stated, “We’ll never stop fighting for government transparency on behalf of our customers and this industry.” Coinbase is prepared for a lengthy process to obtain the requested information.