Coinbase Demands SEC’s Spending Report on Crypto Regulation

The exchange Coinbase has requested information on how much the SEC spent on enforcement actions under the former leadership of Gary Gensler. The company’s chief legal officer, Paul Grewal, stated that the request was filed under the Freedom of Information Act (FOIA).

We know the previous @SECgov’s regulation-by-enforcement approach cost Americans innovation, global leadership, and jobs, but how much did it cost in taxpayer dollars? Today @Coinbase submitted a FOIA request asking the SEC to explain how much its war on crypto cost taxpayers.…

— paulgrewal.eth (@iampaulgrewal) March 3, 2025

He specified that Coinbase is interested in the SEC’s specific expenditures, including employee work hours, contractor payments, and other expenses related to crypto industry regulation.

Grewal noted that the regulator’s strategy harmed jobs, technological developments, and the global leadership of the United States. The company aims to determine how much this cost American taxpayers, he stated.

Coinbase also requested information on the number of enforcement actions against crypto companies, the costs of these actions, and workforce allocation. The exchange is interested in data on the budget and staffing of the division formerly known as the Crypto Assets and Cyber Unit.

The lawyer emphasized that Coinbase seeks transparency and hopes that the disclosure of documents will show how extensively resources were used for increased oversight of the crypto industry.

During Gensler’s tenure, the SEC was frequently criticized for its enforcement approach, which relied on investigations and litigation rather than creating new rules.

In June 2023, the Commission initiated legal proceedings against Coinbase, accusing the platform of failing to comply with securities laws and operating without registration.

In response, representatives of the exchange stated that the regulator’s actions exceeded its authority. The company noted that it had repeatedly approached the SEC for clarification on the application of securities laws but received no answers. The agency questioned these statements.

During the proceedings, Coinbase filed a motion demanding that the Commission, as well as Gensler, provide internal documents and correspondence that formed the basis for the lawsuit.

On February 21, 2025, the exchange’s CEO, Brian Armstrong, announced a preliminary agreement with the SEC. On February 27, the regulator closed the case against Coinbase.