Coinbase Files FOIA Request to Investigate SEC’s Crypto Enforcement Costs
Coinbase has filed a FOIA request to uncover the SEC’s spending on cryptocurrency enforcement actions, seeking details on costs, personnel, and the operations of the crypto enforcement unit. The request highlights concerns surrounding regulatory practices in the crypto industry under the Biden administration. Recent changes in the SEC’s approach and the dismissal of key cases indicate a potential shift towards a more favorable regulatory environment for cryptocurrencies.
Coinbase has filed a Freedom of Information Act (FOIA) request aimed at uncovering the expenditures made by the Securities and Exchange Commission (SEC) on enforcement actions targeting cryptocurrency firms during the Biden Administration. This request was publicly announced by Paul Grewal, the Chief Legal Officer of Coinbase, on Monday.
The FOIA request specifically seeks details regarding the financial impact of the SEC’s regulatory approach, commonly referred to as “regulation by enforcement,” on taxpayer dollars. Coinbase is interested in how much federal money has been allocated for investigations and enforcement related to cryptocurrencies.
In his announcement via X, Mr. Grewal indicated that Coinbase is looking for supporting documents that underlie the SEC’s annual reports, including those derived from the Fiscal Year 2025 Congressional Budget Justification and the Fiscal Year 2023 Annual Performance Report. The timeframe for the requested information covers investigations conducted from April 17, 2021, to January 20, 2025.
Additionally, Coinbase has requested data on the number of SEC employees and contractors who have participated in these enforcement actions. They are particularly interested in the SEC’s “Crypto Assets and Cyber Unit”—an enforcement division that has seen substantial changes since the administration change.
The crypto enforcement unit, which was established in 2017 and expanded under Gary Gensler in May 2022, has reportedly carried out over 100 crypto enforcement actions. Following Gensler’s departure, the SEC has begun to implement a more welcoming approach toward the industry, which includes dismissing several litigations against crypto firms.
Most notably, the SEC recently dropped its lawsuit against Coinbase, a development which the company’s leadership hailed as a significant victory for not only themselves but also for their customers and individual freedom. Mr. Grewal emphasized the importance of clear legislation to shield the industry from political-driven enforcement actions.
In conclusion, Mr. Grewal noted that obtaining a complete understanding of the SEC’s “war on crypto” may be time-consuming. He reaffirmed Coinbase’s commitment to advocating for governmental transparency and assured the crypto community that efforts would continue until the truth is revealed.
Coinbase’s recent FOIA request targets the SEC’s financial involvement in enforcing regulations against cryptocurrency-related businesses. The exchange seeks clarity on costs, personnel involved, and the operations of the SEC’s crypto enforcement unit. With changes in leadership and a more conciliatory approach, there is potential for a shift in regulatory practices. Coinbase remains dedicated to promoting transparency in government dealings with the crypto industry.
Original Source: bitcoinist.com
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