🌎 Coinbase Demands Transparency in SEC Crypto Investigation Costs

Coinbase Seeks Transparency on SEC’s Crypto Investigation Costs

Coinbase, a leading cryptocurrency exchange, has filed a Freedom of Information Act (FOIA) request to uncover the U.S. Securities and Exchange Commission’s (SEC) spending on non-fraud crypto investigations and enforcement actions under former Chair Gary Gensler. The request, covering April 2021 to January 2025, aims to shed light on the costs associated with the SEC’s regulatory actions against the crypto industry.

Requesting Transparency and Accountability

Paul Grewal, Coinbase’s chief legal officer, emphasized the need for accountability, particularly as the SEC transitions to new leadership. Grewal outlined Coinbase’s objectives, stating that the exchange is seeking transparency on investigation details, employee hours, pay, and budget allocations. The request specifically focuses on the SEC’s Crypto Assets and Cyber Unit, a division within the Enforcement Division.

“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?” Grewal wrote. “We want to know more about the previous SEC’s infamous ‘Crypto Assets and Cyber Unit’ within the Enforcement Division – what was their budget, how many employees worked on it, how much did those employee hours cost?”

SEC’s Budget Justification Under Scrutiny

Coinbase’s request references the SEC’s publicly available congressional reports, including the Fiscal Year 2025 Congressional Budget Justification and past performance reports. The exchange is asking for supporting documents detailing the SEC’s expenditures on digital asset investigations and enforcement actions. The FOIA request specifically seeks information on enforcement actions related to digital asset offerings, secondary market transactions, staking, and lending.

Coinbase aims to assess whether the SEC’s enforcement tactics represented a justified use of taxpayer funds or an overreach that stifled crypto innovation.

A Fight for Regulatory Clarity

Coinbase has been a vocal critic of the SEC’s stance on cryptocurrency regulation, frequently advocating for clear, industry-specific guidelines rather than enforcement-driven oversight. The FOIA request marks another step in the company’s broader effort to challenge what it sees as unfair regulatory practices.