Coinbase has filed a Freedom of Information Act request to uncover the U.S. Securities and Exchange Commission’s spending on non-fraud crypto investigations and enforcement actions under former Chair Gary Gensler.
The request, covering April 2021 to January 2025, seeks to shed light on the costs associated with the SEC’s regulatory actions against the crypto industry.
According to Paul Grewal, Coinbase’s chief legal officer, the exchange is requesting transparency on investigation details, employee hours, pay, and budget allocations. Grewal emphasized the need for accountability, particularly as the SEC transitions to new leadership.
Coinbase’s push for government transparency
Grewal outlined Coinbase’s objectives in a series of posts on X, questioning the financial burden of the SEC’s regulatory approach on taxpayers.
“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.
He added that Coinbase aims to determine how many investigations and enforcement actions were conducted, the number of employees and contractors involved, and the overall expenses incurred.
A particular focus of the FOIA request is the SEC’s Crypto Assets and Cyber Unit, a division within the Enforcement Division.
Coinbase is seeking information on the unit’s budget, employee count, and the labor costs associated with crypto-related investigations and enforcement.
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 wants 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.
“We’ll never stop fighting for government transparency on behalf of our customers and this industry,” Grewal stated, adding that Coinbase is prepared for a lengthy process to obtain the requested information.
