Coinbase has filed a FOIA request to uncover the costs of the SEC’s crypto enforcement actions, seeking transparency on taxpayer spending and regulatory efforts.
Coinbase Launches FOIA Inquiry Into SEC’s Crypto Crackdown Costs
Coinbase has taken legal steps to uncover the financial burden of the Securities and Exchange Commission’s (SEC) enforcement actions against the crypto industry. Chief Legal Officer Paul Grewal announced that the company has filed a Freedom of Information Act (FOIA) request to determine the exact costs and resources used in the SEC’s anti-crypto measures.
FOIA Request Targets SEC’s Crypto Enforcement Expenses
The FOIA request seeks detailed records on the SEC’s spending, including the number of enforcement actions taken against crypto companies, the associated costs, and the personnel involved. Coinbase is also investigating third-party contractors hired for these efforts and the payments they received.
Grewal emphasized that beyond the regulatory impact on crypto businesses, taxpayers deserve to know how much money was allocated to these enforcement actions.
SEC’s Crypto Assets and Cyber Unit Under Scrutiny
The investigation also focuses on the SEC’s Crypto Assets and Cyber Unit, a division within its Enforcement branch that played a key role in legal battles against crypto firms. Coinbase is demanding details on the unit’s budget, staff count, and expenditures.
This move follows the SEC’s recent decision to drop its case against Coinbase, which was accused of offering unregistered securities. The withdrawal marked a significant shift in the regulatory landscape, raising further questions about the agency’s approach.
Coinbase Pledges to Pursue Full Transparency
Grewal stated that while obtaining the full scope of the SEC’s expenditures may take time, Coinbase remains committed to uncovering the truth. “It may take time to get the full picture, but I think we’ve shown that we will do what it takes for as long as it takes,” he said.
As Coinbase challenges regulatory practices, the broader crypto community awaits further disclosures. Stay updated on the latest developments in this investigation.
