SEC settles Coinbase lawsuit over lost communications, agrees to overhaul recordkeeping and pay $150,000 in attorney fees.
Regulation & Gov ·
The SEC and Coinbase have concluded a FOIA lawsuit with a settlement that includes a $150,000 payment toward Coinbase's attorney fees, release of two previously withheld documents, and a commitment to review the agency's policies on preserving text messages and other electronic communications. Coinbase's chief legal officer announced the resolution, characterizing it as a win for governmental transparency, though the SEC has not yet issued a public statement.
The dispute began when Coinbase sought internal SEC records detailing the regulator's strategy for enforcing rules against crypto firms during the Biden administration, including the legal rationales behind enforcement actions against companies like Binance and Ripple. The SEC initially withheld these materials; Coinbase later learned that certain communications, including text messages from senior officials, had been automatically deleted and could not be produced. The company argued the agency should adhere to the same record-preservation standards it has enforced on the private sector, citing billions in penalties the SEC has imposed on financial institutions for failing to retain employee communications.
The settlement does not include an SEC admission of wrongdoing but mandates a review of the agency's retention procedures. No SEC official confirmation has been issued as of reporting.