Blab Crypto
SEC Settles FOIA Dispute With Coinbase, Pays $150K, Releases Two Documents
On Wednesday, the U.S. Securities and Exchange Commission (SEC) settled a FOIA dispute with Coinbase by agreeing to pay the exchange $150,000 in attorney fees and release two documents that had been withheld since 2024. The settlement ends a long‑running battle over how the agency handled Coinbase’s records requests during former Chair Gary Gensler’s tenure, and signals a shift toward greater transparency in crypto regulation.
Coinbase’s legal team filed two FOIA suits in 2024, one against the SEC and another against the Federal Deposit Insurance Corporation (FDIC). In each case the exchange alleged that regulators had deliberately withheld records related to Gensler’s policy decisions and to the FDIC’s pause letters—letters that asked banks to limit crypto services between March 2022 and May 2023.
The SEC case focused on documents that would clarify how the agency evaluated ether as a security and on records tied to investigations opened while Gensler was chair. The FDIC case centered on the pause letters, and Coinbase and the FDIC had already resolved that dispute in February 2026, months before the SEC agreement.
Under the settlement, the SEC will pay Coinbase $150,000 to cover attorney fees and will release the two withheld documents. The agency also agreed to conduct a review of its own records and of how it preserves employee text messages—a review prompted by an incident in which the SEC lost nearly 1,000 messages between Gensler and other officials after an automated wipe policy was applied.
Coinbase’s chief legal officer, Paul Grewal, said the settlement forces the SEC and the FDIC to overhaul their disclosure and record‑retention practices. He also noted that the settlement demonstrates how FOIA requests can compel agencies to correct flawed record‑keeping rather than quietly settle disputes.
The review of the SEC’s record‑keeping practices mirrors the overhaul the FDIC agreed to in its February 2026 settlement with Coinbase. Whether the SEC’s review will lead to broader changes in agency practice depends on how the regulator handles future records requests.
For Coinbase users and observers of crypto regulation, the settlement means that two documents that had been withheld will become publicly available. The change does not affect user accounts, holdings, or the services offered by Coinbase.
The settlement adds to a broader trend of federal agencies adopting a more cooperative stance toward crypto exchanges and places additional pressure on regulators to respond to FOIA requests in a timely and transparent manner.
At present, the SEC has committed to reviewing its records and revising its text‑message preservation policy. Coinbase has indicated that it will continue to file FOIA requests if other agencies resist. The outcome of the review and any subsequent policy changes remain to be seen.
In short, the SEC’s payment of $150,000 and the release of two documents close a long‑running FOIA dispute with Coinbase while prompting a review of the agency’s record‑keeping practices. The settlement underscores the importance of transparency in the regulatory oversight of digital assets.
Coinbase’s legal team filed two FOIA suits in 2024, one against the SEC and another against the Federal Deposit Insurance Corporation (FDIC). In each case the exchange alleged that regulators had deliberately withheld records related to Gensler’s policy decisions and to the FDIC’s pause letters—letters that asked banks to limit crypto services between March 2022 and May 2023.
The SEC case focused on documents that would clarify how the agency evaluated ether as a security and on records tied to investigations opened while Gensler was chair. The FDIC case centered on the pause letters, and Coinbase and the FDIC had already resolved that dispute in February 2026, months before the SEC agreement.
Under the settlement, the SEC will pay Coinbase $150,000 to cover attorney fees and will release the two withheld documents. The agency also agreed to conduct a review of its own records and of how it preserves employee text messages—a review prompted by an incident in which the SEC lost nearly 1,000 messages between Gensler and other officials after an automated wipe policy was applied.
Coinbase’s chief legal officer, Paul Grewal, said the settlement forces the SEC and the FDIC to overhaul their disclosure and record‑retention practices. He also noted that the settlement demonstrates how FOIA requests can compel agencies to correct flawed record‑keeping rather than quietly settle disputes.
The review of the SEC’s record‑keeping practices mirrors the overhaul the FDIC agreed to in its February 2026 settlement with Coinbase. Whether the SEC’s review will lead to broader changes in agency practice depends on how the regulator handles future records requests.
For Coinbase users and observers of crypto regulation, the settlement means that two documents that had been withheld will become publicly available. The change does not affect user accounts, holdings, or the services offered by Coinbase.
The settlement adds to a broader trend of federal agencies adopting a more cooperative stance toward crypto exchanges and places additional pressure on regulators to respond to FOIA requests in a timely and transparent manner.
At present, the SEC has committed to reviewing its records and revising its text‑message preservation policy. Coinbase has indicated that it will continue to file FOIA requests if other agencies resist. The outcome of the review and any subsequent policy changes remain to be seen.
In short, the SEC’s payment of $150,000 and the release of two documents close a long‑running FOIA dispute with Coinbase while prompting a review of the agency’s record‑keeping practices. The settlement underscores the importance of transparency in the regulatory oversight of digital assets.
