The dispute between Coinbase and the United States Securities and Exchange Commission (SEC) gained a new chapter after the exchange reached an agreement related to the Freedom of Information Act (FOIA). The outcome marks an important shift in a clash that began when the regulator intensified its offensive against the cryptocurrency sector during Gary Gensler's tenure.
In the final years of the SEC's previous administration, the agency significantly expanded enforcement actions against companies linked to cryptocurrencies. Its stance became even tougher after the collapse of FTX, a period in which several companies in the sector came to face lawsuits and investigations.
Among them was Coinbase itself. In 2023, the largest cryptocurrency exchange in the United States was sued by the SEC in one of the most significant actions involving the crypto market.
However, the relationship between the two parties changed direction in 2024. Coinbase, through the research firm History Associates, filed a lawsuit against the SEC after the agency denied requests for access to internal records related to its regulatory policy for cryptocurrencies.
The initiative sought to obtain documents and communications that could clarify how the SEC developed its enforcement strategy during the Biden administration. The exchange argued that these records could reveal the legal grounds used by the agency in cases brought against major companies in the sector.
In addition to Coinbase, the SEC also filed actions against companies such as Binance and Ripple, reinforcing the perception that the regulator was adopting a broader interpretation of the application of securities laws to the cryptocurrency market.
Now, the regulator has agreed to end the dispute over the information request. Under the agreement, the SEC must pay US$ 150 mil in attorneys' fees, disclose two documents that had previously been withheld, and review its policies related to the preservation and production of text messages and other electronic communications.
The agreement was disclosed by Coinbase's chief legal officer, Paul Grewal, who described the result as a significant achievement for government transparency. The discussion also draws attention because, under Gensler's leadership, the SEC imposed multibillion-dollar fines on financial institutions for failures in preserving internal communications conducted on unofficial channels.
Coinbase maintained that the regulator should follow the same standards of transparency and record preservation that it required of private companies, a position that now gains new weight after the agreement involving FOIA and the disclosure of internal documents tied to cryptocurrency regulation.