Coinbase Takes on SEC: Demands Full Breakdown of Crypto Crackdown Costs
Key Takeaways:
- Coinbase has filed a FOIA request demanding transparency on the SECs expenditures in its enforcement actions against crypto.
- The request seeks details on how much taxpayer money was spent on investigations and lawsuits targeting digital assets.
- The move challenges the regulatory approach under former SEC Chair Gary Gensler.
Coinbase has escalated its battle with the U.S. Securities and Exchange Commission (SEC) by demanding clarity on the agencys financial resources spent on crypto enforcement actions.
Paul Grewal, Coinbases Chief Legal Officer, took to X to announce that the company had filed a Freedom of Information Act (FOIA) request. The request seeks details on how much taxpayer money was allocated to the SECs regulatory actions against crypto firms during former Chair Gary Genslers tenure.
The move underscores Coinbases ongoing critique of the SECs regulation-by-enforcement approach. Grewal highlighted that this method has already cost the U.S. innovation, global leadership, and jobs. Now, Coinbase wants to quantify its impact on taxpayers.
FOIA Request Demands SEC Budget Transparency
In its FOIA filing, Coinbase has requested access to records detailing the SECs financial expenditures on digital asset investigations and enforcement actions. The company specifically seeks documents showing the total costs of these efforts from April 17, 2021, to January 20, 2025.
The request outlines several key points, including:
- The SECs total annual spending on investigations and lawsuits targeting digital assets.
- The number of full-time SEC employees assigned to these enforcement actions, along with their total compensation.
- The agencys budget for third-party contractors such as expert witnesses and consultants involved in crypto-related cases.
- The hours spent by SEC personnel on crypto-related probes and lawsuits.
Coinbases inquiry extends to the financial records of the SECs Crypto Assets and Cyber Unit, which has been central to its enforcement actions. The exchange argues that these disclosures will shed light on the true cost of the SECs aggressive stance against the industry.
Coinbase Pushes for Greater Regulatory Clarity
Coinbases latest move signals its broader push for regulatory transparency. The company has long argued that the SECs approach has stifled innovation and driven crypto businesses offshore. The FOIA request is part of Coinbases ongoing legal and political efforts to push for clear, fair, and transparent crypto regulations.
If the SEC complies with the request, the findings could fuel further debate over the agencys role in shaping the future of digital assets. A disclosure of excessive spending could strengthen the argument that enforcement alone is ineffective for overseeing the industry.
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Text source: TronWeekly
