Breaking: US SEC Settles FOIA Lawsuit, Will Pay $150K to Coinbase
Highlights
- US SEC reaches a settlement with Coinbase on FOIA lawsuit.
- The securities regulator will pay $150,000 award to Coinbase for lost messages.
- Coinbase and its executives continue to work with SEC and other regulator on crypto regulations.
The U.S. Securities and Exchange Commission has reached a settlement in a Freedom of Information Act lawsuit filed by Coinbase. The securities regulator has agreed to award the crypto exchange $150,000 for lost text messages under Gary Gensler-led SEC.
US SEC Settles FOIA Lawsuit with Coinbase
Coinbase chief legal officer Paul Grewal announced the FOIA lawsuit settlement between the US SEC and Coinbase, as per a WSJ op-ed on July 22. This marks another legal victory for the crypto exchanges amid ongoing efforts to increase crypto regulatory clarity.
The FOIA case centered on Coinbase’s requests for internal SEC documents related to the securities agency’s approach to crypto regulation. The FOIA was filed following the SEC’s dismissal of a lawsuit against Coinbase in early 2025 as the regulator shifted to developing crypto policy and regulations.
Coinbase sued the SEC and the Federal Deposit Insurance Corp (FDIC) in 2024, seeking documents it said would show a concerted effort by U.S. regulators to cut out crypto companies under Operation Choke Point 2.0.
Grewal claimed the SEC lost text messages between former Chair Gary Gensler and other officials after a process the SEC said “automatically wiped” certain data.
To understand how these regulatory shifts impact domestic platforms, traders can review the top-rated and fully compliant US crypto exchanges currently leading the market.
$150K Award to Crypto Exchange
As part of the settlement, the SEC will pay a $150,000 award to Coinbase for text messages lost in the incident. The securities regulator will also fix its record-retention policies, Paul Grewal wrote.
Coinbase has achieved major wins against the SEC under US President Donald Trump, including the dismissal of a major lawsuit the regulator brought against the company under President Joe Biden.
Moreover, the crypto exchange and its executives have played a key role in lobbying for crypto regulatory clarity, the GENUIS Act, and the CLARITY Act.
Under the Trump administration, the SEC has worked on developing more crypto industry-friendly policies, including an innovation exemption for tokenization. Coinbase CEO Brian Armstrong and CLO Paul Grewal are pushing Congress to pass the CLARITY Act.
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