EddieJayonCrypto
4 Mar 25
Coinbase has filed a Freedom of Information Act (FOIA) request demanding transparency from the Securities and Exchange Commission (SEC) regarding the taxpayer cost of former Chair Gary Gensler's aggressive crypto enforcement. The request seeks details on the SEC's spending on enforcement actions, in...
Coinbase has submitted a Freedom of Information Act (FOIA) request to the Securities and Exchange Commission (SEC) seeking transparency on the taxpayer cost of former Chair Gary Gensler's aggressive crypto enforcement. The request aims to reveal how taxpayer funds were used for enforcement actions against digital asset entities, including details on employee hours, contractor expenses, and other costs related to investigations of Coinbase, Gemini, and other companies.
The FOIA filing also seeks information on the SEC's "Crypto Assets and Cyber Unit," reflecting a broader industry demand for accountability and transparency. Chief Legal Officer Paul Grewal emphasized Coinbase's commitment to pursuing greater transparency, stating that the company would continue fighting for government transparency on behalf of its customers and the industry.
Gemini's Winklevoss twins have also criticized the SEC's approach, highlighting the 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, including dismissing some cases against crypto firms and forming a new task force to establish more explicit guidance, has prompted Coinbase to emphasize 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.