Coinbase, one of the largest cryptocurrency exchanges, has launched an information offensive against the SEC (Securities and Exchange Commission) by filing a Freedom of Information Act (FOIA) request. The aim is to determine the exact cost to American taxpayers of the “war on crypto” waged by the SEC under the previous administration. This bold move raises crucial questions about the legitimacy and effectiveness of the actions taken by the American regulator against crypto companies.
Coinbase demands accountability: budget, employees and contracts of the “crypto war”
Coinbase seeks detailed information on the expenses incurred by the SEC in its enforcement actions against crypto companies between April 17, 2021 and January 20, 2025. The FOIA request seeks to determine the number of investigations and legal actions filed, the number of employees involved, the use of external contractors and, above all, the total cost of these operations to taxpayers. The company is also seeking specific information about the budget, staffing, and spending of the SEC’s “Crypto Assets and Cyber Unit,” a controversial division recently replaced by the “Cyber and Emerging Technologies Unit (CETU).”
Paul Grewal, Coinbase’s chief legal officer, claims that the SEC’s approach under the previous administration cost Americans “innovation, global leadership, and jobs.” By requesting transparency on the true costs of this policy, Coinbase hopes to demonstrate that the “regulation by enforcement” approach was counterproductive and harmful to the crypto ecosystem. The company is determined to obtain this information, no matter how long it takes.
SEC Retiring? Lawsuits Dropped and New Climate
Coinbase’s FOIA request comes amid significant changes at the SEC. Gary Gensler, known for his tough stance on crypto regulation, resigned on January 20, 2025, the same day Donald Trump began his second term. Following his departure, the SEC dropped a series of lawsuits against crypto companies, including Coinbase itself, Kraken, Yuga Labs, and Gemini. The investigation into Uniswap Labs and Robinhood Crypto was also dropped.
This turnaround suggests a shift in direction at the SEC, potentially driven by a more pragmatic and less confrontational approach. Coinbase’s initiative aims to capitalize on this new climate by highlighting the exorbitant costs and ineffectiveness of the previous administration’s “war on crypto.” The company hopes this information will help shape clearer and more innovation-friendly regulation in the cryptocurrency sector.
