Coinbase is requesting a record of how much the Securities and Exchange Commission spent on enforcement actions under former Chair Gary Gensler.
Chief Legal Officer Paul Grewal shared that the company submitted a Freedom of Information Act request seeking data on employee hours, contractor expenses, and other line items tied to what he described as the SEC’s “war on crypto.”
His statements pointed to investigations of Coinbase, Gemini, and other companies, along with the broader impact on Americans’ jobs and technological competitiveness.
Grewal stated,
“We know the previous @SECgov’s regulation-by-enforcement approach cost Americans innovation, global leadership, and jobs, but how much did it cost in taxpayer dollars?”
The FOIA filing asks for documents detailing the number of enforcement actions launched against digital asset entities, the associated costs of those efforts, and the staffing resources allocated to them.
Coinbase also wants information on the unit previously called the “Crypto Assets and Cyber Unit,” requesting clarity on that group’s budget, staff headcount, and total compensation. According to Grewal, the intention is to reveal how taxpayer funds were used to support what he characterizes as aggressive oversight without formal rulemaking.
The SEC’s strategy under Gensler frequently relied on enforcement actions instead of newly drafted regulations, prompting pushback from several crypto firms. Coinbase’s request comes after the agency dropped its lawsuit against the exchange in late February, citing a broader pivot in its regulatory approach.
Grewal further noted that the company would continue pursuing greater transparency, suggesting that any forthcoming documents could expose the extent to which enforcement-based tactics shaped policy decisions.
Grewal emphasized Coinbase’s commitment to this issue, stating:
“We’ll never stop fighting for government transparency on behalf of our customers and this industry. It may take time to get the full picture, but I think we’ve shown that we will do what it takes for as long as it takes.”
Gemini’s Winklevoss twins have also criticized the SEC’s approach, pointing to legal fees when that agency dropped its investigation into their platform. Coinbase’s filing signals a broader demand for accountability following similar calls from other industry participants.
The 17-point FOIA request may provide unprecedented visibility into the SEC’s internal allocation of resources toward crypto enforcement during a contentious period for the industry.
The SEC’s recent shift includes dismissing some cases against crypto firms and declaring memecoins are not securities while forming a new task force to establish more explicit guidance. Coinbase’s FOIA submission indicates that clarity alone may not resolve existing grievances if the costs incurred remain obscured.
Grewal emphasized that the exchange is prepared to wait through the entire FOIA process to secure the data it believes could help the public understand how government resources were allocated when the SEC targeted digital asset businesses.
Mentioned in this article
Credit: Source link