Coinbase Requests Disclosure of SEC Cryptocurrency Regulation Costs
Date: 2025-03-05 Author: Henry Casey Categories: BUSINESS
Coinbase’s chief legal officer, Paul Grewal, said the company used the Freedom of Information Act (FOIA) to obtain details of the Commission’s expenses. The exchange wants to obtain data on the resources spent, including employee hours, contractors’ pay, and other budget items related to crypto market regulation.
According to Grewal, the regulator’s aggressive strategy has negatively affected job creation, technological development, and global leadership of the United States. Coinbase intends to find out at what cost to American taxpayers this policy has cost.
In the request, the exchange also demanded to disclose the number of enforcement actions against crypto companies, the associated costs, and the allocation of human resources. In particular, Coinbase is interested in the budget and headcount of the unit formerly known as the Crypto Assets and Cyber Unit.
The lawyer emphasized that the company is seeking transparency. In his opinion, the publication of documents will allow us to assess how actively the SEC has directed resources to tightening control over cryptocurrency companies.
The regulator's policies under Gensler have repeatedly drawn criticism for focusing on investigations and litigation instead of developing clear rules.
It is worth recalling that in June 2023, the SEC filed a lawsuit against Coinbase, accusing the platform of violating securities laws and failing to register. The exchange claimed that the regulator was exceeding its authority, since the company tried to get clarification, but never received an answer. The SEC disputed these claims.
During the proceedings, Coinbase demanded that the regulator and Gensler personally disclose internal documents and correspondence that served as the basis for the lawsuit.
On February 21, 2025, Coinbase CEO Brian Armstrong announced that he had reached a preliminary agreement with the SEC, and on February 27, the Commission officially closed the case against the exchange.
