Coinbase is calling for transparency from the United States Securities and Exchange Commission. The crypto exchange has filed a Freedom of Information Act (FOIA) request, asking the SEC to disclose how much money it has spent on enforcement action against the crypto industry.
Coinbase Chief Legal Officer Paul Grewal announced it on X. He questioned how much taxpayers’ money the SEC has used pursuing crypto companies. The request seeks details on the agency’s spending from April 2021 to January 2025.
Coinbase wants to know how much the SEC has spent on investigations and enforcement cases against crypto companies. It wants the number of staff working on such cases, their salaries, and how much was spent on retaining third-party contractors like expert witnesses and consultants. The exchange is also asking for the SEC’s Cyber Unit budget, which handles crypto cases.
Under former SEC Chair Gary Gensler’s leadership, the agency took an aggressive approach to regulating digital assets. It’s the perception of many in the crypto industry that this enforcement strategy choked off innovation, pushed business abroad, and introduced uncertainty into the U.S. market. Coinbase’s request aims to find out the economic cost of such measures.
Coinbase demands detailed financial records
The FOIA request aims to have the SEC provide supporting documents that it utilizes in its annual reports to Congress. Coinbase is looking for complete records on all investigations and enforcement actions regarding digital assets. They encompass cases pertaining to the sales of cryptocurrencies, secondary market transactions, staking services, and lending platforms.
The company is also asking for information on the number of SEC staff who worked on crypto cases, the number of hours they worked, and the total compensation for these roles. Coinbase also wants to know how much the SEC spent hiring outside experts to assist in these enforcement actions.
If the SEC complies, the papers made available could reveal the true cost of its hostile strategy toward crypto. This move is part of Coinbase and other industry players’ broader backlash against the SEC’s approach to regulation.
