Key facts
- The SEC has settled a FOIA lawsuit with Coinbase.
- Coinbase will receive $150,000 from the SEC.
- The lawsuit concerned Coinbase's requests for SEC documents on crypto regulation.
- The SEC lost text messages from former Chair Gary Gensler and other officials.
- The SEC will also revise its record-retention policies.
The U.S. Securities and Exchange Commission (SEC) has reached a settlement in a Freedom of Information Act (FOIA) lawsuit filed by Coinbase, agreeing to pay the cryptocurrency exchange $150,000. The settlement addresses lost text messages within the SEC, which occurred after a process that the regulator stated "automatically wiped" certain data.
Coinbase chief legal officer Paul Grewal announced the settlement, noting it as another legal success for the exchange amid its push for regulatory clarity in the crypto space. The FOIA case specifically sought internal SEC documents detailing the agency's approach to cryptocurrency regulation. This legal action followed the SEC's dismissal of a lawsuit against Coinbase in early 2025, as the regulator focused on developing its crypto policies.
Coinbase had sued both the SEC and the Federal Deposit Insurance Corporation (FDIC) in 2024, aiming to obtain documents they believed would demonstrate a coordinated effort by U.S. regulators to restrict crypto companies, referred to as "Operation Choke Point 2.0." Grewal highlighted that the SEC will also be required to fix its record-retention policies as part of the agreement. The article also mentions Coinbase's lobbying efforts for the GENIUS Act and the CLARITY Act, and notes that under the Trump administration, the SEC has been working on developing more industry-friendly policies, such as an innovation exemption for tokenization.