The U.S. Securities and Exchange Commission has resolved its records dispute with Coinbase, closing a legal battle that began over transparency requests from the Gary Gensler era. The agreement marks another milestone in Coinbase’s broader campaign to challenge how federal agencies handled cryptocurrency oversight.
Besides ending the lawsuit, the settlement requires the SEC to review its record preservation practices, release previously withheld documents, and reimburse legal costs tied to the Freedom of Information Act case. The outcome adds momentum to ongoing efforts aimed at increasing accountability across financial regulators.
Settlement Brings FOIA Case to a Close
Coinbase launched lawsuits against the SEC and the Federal Deposit Insurance Corporation in 2024 after both agencies allegedly failed to fulfill public records requests. Consequently, the exchange argued that missing records prevented greater transparency around regulatory actions affecting digital assets.
Under the settlement, the SEC will pay $150,000 in attorney fees to History Associates. Additionally, the agency will disclose two withheld documents and examine how it stores official text messages and related records.
Transparency Debate Continues
Meanwhile, Coinbase Chief Legal Officer Paul Grewal criticized the previous SEC leadership for pursuing aggressive enforcement against the crypto sector. Moreover, he argued that stronger disclosure standards would help prevent similar disputes.
Earlier this year, Coinbase also settled its separate FOIA lawsuit against the FDIC over documents linked to crypto-related pause letters issued to banks between 2022 and 2023.
Related: SEC’s Hester Peirce Signals Closer Review of Crypto Vaults and Onchain Lending
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