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

Crypto alternate Coinbase is looking for to uncover how much the US Securities and Alternate Fee spent on enforcement motion in opposition to crypto corporations.  

Coinbase chief authorized officer Paul Grewal stated in a March 3 statement to X that the request beneath the Freedom of Info Act (FOIA) was submitted to the SEC to discover out how many investigations and enforcement actions had been introduced in opposition to crypto corporations between April 17, 2021, by way of Jan. 20, 2025.

The crypto exchange additionally seeks data on how many workers labored on the enforcement actions, how many third-party contractors had been used, and how much all of it cost.

“We all know the earlier SEC’s regulation-by-enforcement method cost Individuals innovation, world management, and jobs, however how much did it cost in taxpayer {dollars}? “ Grewal stated.

“We additionally need to know extra about the earlier SEC’s notorious Crypto Belongings and Cyber Unit inside the Enforcement Division – what was their finances, how many workers labored on it, how much did these worker hours cost?”

The SEC’s Crypto Belongings and Cyber Unit, fashioned in 2017, introduced enforcement actions in opposition to fraudulent and unregistered crypto asset choices and platforms. The unit was replaced by the Cyber and Emerging Technologies Unit (CETU) on Feb. 20.

Grewal says whereas it could take time to “get the full image,” the crypto alternate will fortunately “do what it takes for so long as it takes” to get the requested data.

An SEC spokesperson declined to remark.

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

Whereas Gensler was at the helm of the regulator, beginning in 2021, the SEC took an aggressive regulatory stance toward crypto, bringing upward of 100 regulatory actions in opposition to corporations. 

Associated: SEC drops investigation into NFT marketplace OpenSea

Gensler departed the similar day that crypto-friendly Donald Trump began his second time period as US president. Trump had promised to fire Gensler if elected. 

Following Gensler’s exit, the SEC has opted out of a swathe of lawsuits in opposition to crypto corporations. 

Coinbase was sued by the SEC in June 2023, alleging the alternate by no means registered as a dealer, nationwide securities alternate, or clearing company.

The motion 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 completely.

The SEC dropped its lawsuit against crypto exchange Kraken on March 3, which adopted a raft of different dismissals, which reportedly included non-fungible token (NFT) conglomerate Yuga Labs on the same day and crypto exchange Gemini on Feb. 26.

It additionally lately ended its investigation of Uniswap Labs, the developer behind the Uniswap decentralized alternate and on-line brokerage Robinhood Crypto, which acquired a Wells discover on Could 4. 

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