The SEC has agreed to hand Coinbase $150,000 in legal fees to put an end to a Freedom of Information Act lawsuit that had been grinding through courts for two years. The case centered on internal records from the agency's crypto enforcement push under former Chair Gary Gensler, and it ended not with a ruling on the underlying claims but with a fee settlement.

At the heart of the dispute: text messages from a critical stretch of 2022, including the weeks after the FTX collapse, were gone. The SEC's own inspector general confirmed in 2025 that an automated enterprise wipe had erased Gensler's device, taking those communications with it. Coinbase had been trying to obtain those records through FOIA requests. The SEC, under its current leadership, chose to settle rather than fight on.

Paul Grewal, Coinbase's chief legal officer, told Bloomberg the outcome reflects a shift in posture at the agency. "Unlike the SEC in the previous administration, this SEC acknowledges that what it did was wrong and wants to make sure it doesn't happen again," he said.

Two Regulators, Two Settlements

Coinbase's FOIA litigation wasn't aimed at the SEC alone. The company also sued the Federal Deposit Insurance Corporation, accusing both agencies of pressuring banks to sever ties with crypto firms, a practice the industry called "Operation Choke Point 2.0." The FDIC wrapped up its piece of the case in February, paying out more than $188,000 in legal fees. Documents released as part of that settlement showed FDIC staff discouraging banks from engaging in crypto-related activity.

With the SEC settlement now signed, both tracks of the same litigation have closed through fee agreements, without any court ever ruling on whether the underlying FOIA requests were handled lawfully.

Broader Shift in SEC Crypto Policy

The settlement lands during a notable reversal at the SEC. Since the change in administration, the agency has dropped a string of high-profile crypto enforcement actions, including its own lawsuit against Coinbase, and is now drafting rules that would allow brokers to offer blockchain-based securities. The $150,000 payment closes one of the last formal legal actions Coinbase had filed against federal regulators over their conduct during the 2022 to 2024 period, a stretch that also saw Circle, BitGo, and Bullish move toward public listings.

  • SEC settlement: $150,000 in legal fees paid to Coinbase
  • FDIC settlement (February): more than $188,000 in legal fees
  • Records at issue: Gensler's texts from the post-FTX period, wiped by automated policy

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