Coinbase filed a Freedom of Information Act (FOIA) request to seek information on the Securities and Exchange Commission (SEC)’s spending on enforcement actions against crypto firms during the Biden Administration.
Coinbase Seeks Details On SEC’s Crypto War Cost
On Monday, Paul Grewal, Coinbase’s Chief Legal Officer (CLO), announced that the company had submitted a FOIA request to the SEC asking how much the regulatory agency had spent on crypto-related enforcement actions. Per the post, the crypto exchange requested information on how much money the SEC’s “regulation by enforcement” approach cost “in taxpayer dollars.”
After reviewing several of the SEC’s publicly available Congressional reports, including the Fiscal Year 2025 Congressional Budget Justification (CBJ) and Fiscal Year 2023 Annual Performance Report (APR), Coinbase is seeking the supporting documentation used to create the current and past annual reports.
In the X threat, Grewal tagged the Elon Musk-led US Department of Government Efficiency (DOGE) and explained the company is seeking answers to the number and cost of crypto-related investigations and enforcement actions brought between April 17, 2021, and January 20, 2025.
Coinbase has asked for the number of employees and third-party contractors who worked on these investigations and enforcement actions. Additionally, the company wants to “know more about the previous SEC’s infamous ‘Crypto Assets and Cyber Unit’ within the Enforcement Division.”
It’s worth noting that the Commission’s special crypto enforcement unit has allegedly undergone significant changes since the new administration took office. As Bitcoinist reported, some sources close to the matter told The New York Times that the regulatory agency was scaling back the special enforcement division by reassigning its members to other SEC departments.
The special unit, created in 2017 during the first Trump administration, comprised lawyers and staff dedicated to bringing industry-related enforcement actions. Under Gary Gensler’s supervision, the crypto enforcement unit expanded significantly, nearly doubling to 50 dedicated positions in May 2022. During the Biden administration, the unit reportedly brought over 100 crypto-related actions.
Getting The ‘Full Picture’ May Take Time
Following Gensler’s departure from the SEC and under the new crypto-friendly administration, the Commission has taken steps to change its heavily criticized approach and be more welcoming to the industry.
On January 21, the US agency launched the Crypto Task Force, led by SEC Commissioner Hester Peirce, to develop a clear and comprehensive regulatory framework. Since then, the Commission has dismissed several key crypto litigations and closed many investigations on crypto firms without taking any enforcement actions.
Last week, the SEC officially dropped its lawsuit against Coinbase after announcing its plan to dismiss the case on February 21. At the time, the company’s leadership called the development a victory “not just for Coinbase, but for our customers, the United States, and individual freedom.”
Grewal called for clear crypto legislation to prevent “rogue attacks” and noted that the SEC is being held accountable for the previous enforcement cases driven by political leadership.
On his recent X thread, Coinbase’s CLO concluded that “it may take time to get the full picture” of the SEC’s “war on crypto.” He promised customers and the crypto community to “never stop fighting for government transparency,” and to “do what it takes for as long as it takes” to unveil the truth.
