Coinbase files FOIA to see how much the SEC’s ‘war on crypto’ cost

Crypto exchange Coinbase is seeking to discover how much the US Securities and Exchange Commission (SEC) spent on enforcement action against crypto firms.

Coinbase chief legal officer Paul Grewal said in a March 3 statement to X that the request under the Freedom of Information Act (FOIA) was submitted to the SEC to find out how many investigations and enforcement actions were brought against crypto firms between April 17, 2021, through Jan. 20, 2025.

The crypto exchange also seeks information on how many employees worked on the enforcement actions, how many third-party contractors were used, and how much it all cost.

“We know the previous SEC’s regulation-by-enforcement approach cost Americans innovation, global leadership, and jobs, but how much did it cost in taxpayer dollars? “ Grewal said.

“We also want to know more about the previous SEC’s infamous Crypto Assets and Cyber Unit within the Enforcement Division – what was their budget, how many employees worked on it, how much did those employee hours cost?”

The SEC’s Crypto Assets and Cyber Unit, formed in 2017, brought enforcement actions against fraudulent and unregistered crypto asset offerings and platforms. The unit was replaced by the Cyber and Emerging Technologies Unit (CETU) on Feb. 20.

Grewal says while it may take time to “get the full picture,” the crypto exchange will happily “do what it takes for as long as it takes” to get the requested information.

An SEC spokesperson declined to comment.

Former SEC Chair Gary Gensler, known for his hardline stance on crypto regulation, resigned on Jan. 20, 2025.

While at the helm of the regulator, which began in 2021, the SEC took an aggressive regulatory stance toward crypto, bringing upward of 100 regulatory actions against firms.

Related: SEC drops investigation into NFT marketplace OpenSea

Gensler departed the same day that crypto-friendly Donald Trump started his second presidential term as US president. Trump had promised to fire Gensler once elected.

Following Gensler’s exit, the SEC has opted out of a swathe of lawsuits against crypto firms.

Coinbase was sued by the SEC in June 2023, alleging the exchange never registered as a broker, national securities exchange, or clearing agency.

The action was dropped on Feb. 27, when the SEC agreed to voluntarily dismiss all litigation tied to Coinbase and Coinbase Global with prejudice, ending the case permanently.
The SEC dropped its lawsuit against crypto exchange Kraken on March 3, which followed a raft of other dismissals, which reportedly included non-fungible token (NFT) conglomerate Yuga Labs on the same day and crypto exchange Gemini on Feb. 26.

It also recently ended its investigation of Uniswap Labs, the developer behind the Uniswap decentralized exchange and online brokerage Robinhood Crypto, which received a Wells notice on May 4.

Magazine: Elon Musk’s plan to run government on blockchain faces uphill battle