Coinbase, one of the leading cryptocurrency exchanges, is taking a bold step in demanding transparency from the Securities and Exchange Commission (SEC). The company’s Chief Legal Officer, Paul Grewal, recently revealed that Coinbase has submitted a Freedom of Information Act (FOIA) request to obtain information on the SEC’s enforcement actions under former Chair Gary Gensler.
Grewal’s statements suggest that Coinbase is seeking details on the financial resources allocated to the SEC’s “war on crypto.” The company is specifically interested in obtaining data on employee hours, contractor expenses, and other line items related to the SEC’s investigations into digital asset entities like Coinbase and Gemini.
The FOIA filing aims to shed light on the costs associated with the SEC’s enforcement actions against cryptocurrency companies, as well as the staffing resources dedicated to these efforts. Coinbase is also seeking information on the now-defunct “Crypto Assets and Cyber Unit,” with the goal of understanding how taxpayer funds were utilized to support what Grewal describes as aggressive oversight without formal rulemaking.
This move by Coinbase comes in response to the SEC’s regulatory approach under Gensler, which often relied on enforcement actions rather than new regulations. The agency’s strategy has faced criticism from various crypto firms, prompting calls for greater transparency and accountability.
In a statement, Grewal emphasized Coinbase’s commitment to fighting for government transparency and industry accountability. The company’s FOIA request reflects a broader demand for clarity on how the SEC’s enforcement-based tactics have influenced policy decisions in the cryptocurrency space.
The SEC’s recent pivot in regulatory approach, including dropping cases against crypto firms and clarifying the status of memecoins as non-securities, has raised questions about the agency’s enforcement priorities. Coinbase’s FOIA submission signals a desire to understand the full extent of the SEC’s resource allocation in the crypto enforcement arena.
As Coinbase continues to push for greater transparency, industry participants like Gemini’s Winklevoss twins have also criticized the SEC’s regulatory approach. The 17-point FOIA request submitted by Coinbase may provide unprecedented insight into the SEC’s internal workings during a pivotal period for the crypto industry.
While the SEC’s recent efforts to provide more explicit guidance on crypto regulation are a step in the right direction, Coinbase’s insistence on transparency underscores the need for accountability in the regulatory landscape. The exchange is prepared to wait through the FOIA process to obtain the data it believes will help the public understand how government resources were utilized in targeting digital asset businesses.
Overall, Coinbase’s pursuit of transparency and accountability in its dealings with the SEC sets a precedent for industry players seeking clarity in an evolving regulatory environment. By demanding greater visibility into the SEC’s enforcement actions, Coinbase is taking a proactive stance in shaping the future of cryptocurrency regulation.