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FinanceCoinbase settles FOIA lawsuit with SEC; agency to pay $150,000 and reform record-retention policies
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Coinbase has settled a Freedom of Information Act (FOIA) lawsuit against the U.S. Securities and Exchange Commission (SEC), according to a Wall Street Journal op-ed by Coinbase's chief legal officer, Paul Grewal. The lawsuit sought records from the SEC, including text messages between former Chair Gary Gensler and other officials that the agency said were 'automatically wiped' due to its data retention policies. As part of the settlement, the SEC will pay $150,000 and reform its record-retention policies. Coinbase originally sued the SEC and the FDIC in 2024, alleging a coordinated effort by U.S. regulators to suppress crypto companies. The exchange has since achieved significant legal victories under President Donald Trump, including the dismissal of a major SEC enforcement action and the passage of a stablecoin bill in Congress.
Source report
Source: Reuters Reading time: 1 min
July 22 (Reuters) — Coinbase has settled a Freedom of Information Act (FOIA) lawsuit against the U.S. Securities and Exchange Commission (SEC) over records it sought from the agency, the cryptocurrency exchange's chief legal officer, Paul Grewal, said in a Wall Street Journal op-ed on Wednesday.
Key Details of the Settlement
- Grewal stated that the SEC, which oversees corporate record-keeping, had lost text messages between former Chair Gary Gensler and other officials after a process the agency described as having "automatically wiped" certain data.
- As part of the settlement, the SEC will pay $150,000 and revise its record-retention policies.
The SEC did not immediately respond to a Reuters request for comment.
Background of the Lawsuit
Coinbase sued the SEC and the Federal Deposit Insurance Corp. (FDIC) in 2024, seeking documents that it argued would demonstrate a coordinated effort by U.S. regulators to suppress crypto companies. The lawsuit specifically requested additional communications from senior SEC officials, including Gensler.
Recent Wins for Coinbase
Under U.S. President Donald Trump, Coinbase has achieved several major victories against the SEC, including:
- The dismissal of a significant lawsuit the regulator had brought against the company under President Joe Biden.
- Support for a stablecoin bill passed by the U.S. Congress.
Reuters has also reported that the SEC is preparing more industry-friendly policies, including one that would permit crypto companies to offer blockchain-based stocks.
Reporting by Hannah Lang in New York and Utkarsh Shetti in Bengaluru; Editing by Tasim Zahid
Source
Yahoo FinanceWestern
Part of this Story
US SEC settles FOIA lawsuit with Coinbase over lost messages