Coinbase Files FOIA Request to Uncover the Financial Costs of SEC's Crypto Enforcement Actions

Announced by Coinbase's chief legal officer, Paul Grewal, on March 3, the request seeks details on the number of investigations, SEC employees involved

Coinbase has filed a Freedom of Information Act (FOIA) request to collect data on the U.S. Securities and Exchange Commission’s (SEC) actions against crypto firms.

Key Takeaways:

* The request, submitted by Coinbase chief legal officer Paul Grewal, aims to uncover the financial footprint of the SEC’s crypto enforcement efforts.

* It seeks information on the number of investigations, involved employees, third-party contractors, and the total taxpayer costs between April 17, 2021, and January 20, 2025.

* Grewal expressed interest in the now-defunct Crypto Assets and Cyber Unit, which was replaced by the Cyber and Emerging Technologies Unit on February 20, 2025.

"We know the previous @SECGov’s regulation-by-enforcement approach cost Americans innovation, global leadership, and jobs," Grewal wrote on Friday. "But how much did it cost in taxpayer dollars? Today @Coinbase submitted a FOIA request asking the SEC to explain how much its war on crypto cost taxpayers..."

This move follows the resignation of SEC Chair Gary Gensler on January 20, 2025, and the subsequent shift in U.S. crypto policy under newly inaugurated President Donald Trump.

Gensler’s tenure saw an unprecedented surge in SEC activity against crypto firms, with over 100 enforcement actions being filed. Among the targeted firms was Coinbase, which faced a lawsuit from the SEC in June 2023.

However, in a surprising turn of events, the SEC voluntarily dismissed its case against Coinbase on February 27, 2025. This move was part of a broader pattern, with other cases against firms like Kraken, Yuga Labs, Gemini, Uniswap Labs, and Robinhood Crypto also being closed.

As the dust settles on Gensler’s era, the focus now shifts to the Trump administration and its approach to crypto policy. With a new president and a modified SEC, the landscape of cryptocurrency regulation in the U.S. is set for another transformation.