Coinbase has reached a settlement with the U.S. Securities and Exchange Commission (SEC), ending a Freedom of Information Act (FOIA) lawsuit that sought internal records related to the agency’s handling of cryptocurrency oversight during former SEC Chair Gary Gensler’s tenure.
The agreement requires the SEC to review its record preservation practices, release two previously withheld documents, and pay $150,000 in attorney fees to History Associates, the consulting firm that filed the FOIA requests on Coinbase’s behalf. The settlement also follows revelations that nearly 11 months of Gensler’s official text messages were lost during a period when the SEC intensified enforcement actions against the crypto industry.
The resolution marks the latest chapter in Coinbase’s broader effort to obtain greater transparency from U.S. financial regulators.
Key Takeaways
- Coinbase and the SEC have settled a FOIA lawsuit that began in 2024.
- The SEC will pay $150,000 in attorney fees and release two previously withheld documents.
- The agency has agreed to review its record preservation policies.
- Nearly 11 months of former SEC Chair Gary Gensler’s text messages were lost due to record management failures.
- The settlement follows the SEC’s dismissal of its enforcement case against Coinbase earlier in 2025.
FOIA Dispute Centered on Crypto Related Records
Coinbase filed the lawsuit after seeking internal SEC communications concerning the agency’s approach to cryptocurrency regulation and enforcement. The requests were submitted through History Associates under the Freedom of Information Act after the exchange argued the SEC had failed to provide documents relating to its decision making during a period of heightened scrutiny of the digital asset industry.
The legal battle formed part of Coinbase’s wider campaign to increase transparency around how federal agencies developed and implemented crypto related policies.
Under the settlement, the SEC has agreed to disclose two records that had previously been withheld and compensate History Associates for legal expenses incurred during the litigation.
Missing Gensler Messages Became Central Issue
Coinbase Chief Legal Officer Paul Grewal said the settlement follows findings that the SEC lost nearly 11 months of former Chair Gary Gensler’s text messages covering the period from October 18, 2022, through September 6, 2023.
The missing communications coincided with one of the agency’s most active periods of cryptocurrency enforcement. According to the SEC’s Office of Inspector General, the messages were lost because of avoidable technical and record management failures after Gensler’s government issued phone stopped synchronizing with the agency’s device management system.
Subsequent efforts to restore access resulted in the device being reset before a usable backup had been created, permanently deleting the messages. Although investigators concluded the incident resulted from administrative errors rather than intentional destruction, they described the loss as preventable.
Investigators were later able to recover approximately 1,500 related text messages from other officials’ devices, with roughly 38% involving official agency business, including discussions concerning the timing of enforcement actions against cryptocurrency trading platforms.
Coinbase Criticizes Recordkeeping Standards
Grewal argued that the SEC should be held to the same record preservation standards it enforces across the financial industry. He noted that the regulator has imposed more than $2 billion in penalties against financial firms for failing to properly preserve business communications while experiencing similar shortcomings internally. The settlement requires the SEC to review how it preserves official communications and evaluate its existing records management procedures.
Following recommendations from the Inspector General, the agency has already introduced several operational changes, including disabling text messaging on most government devices, notifying the National Archives about the lost records, and implementing additional safeguards before government devices can be reset.
Part of a Broader Transparency Campaign
The SEC agreement follows another legal victory for Coinbase involving the Federal Deposit Insurance Corporation.
Earlier this year, Coinbase settled a separate FOIA lawsuit against the FDIC after seeking internal communications known as “pause letters,” which requested that banks delay or limit certain cryptocurrency related activities. That settlement prompted the FDIC to revise aspects of its disclosure practices and pay attorney fees.
Meanwhile, the SEC’s enforcement lawsuit against Coinbase, originally filed during the Gensler administration, was dismissed earlier in 2025 under the agency’s new leadership. Together, the settlements conclude several of the exchange’s highest profile legal disputes with federal regulators over both enforcement and government transparency.
Conclusion
The settlement between Coinbase and the SEC brings an end to a two year dispute over public records tied to the agency’s cryptocurrency oversight during the Gensler era. While the agreement does not conclude that records were intentionally destroyed, it requires the SEC to strengthen its record preservation practices, release additional documents, and compensate Coinbase’s legal representatives for pursuing the case.
The outcome also reinforces Coinbase’s broader effort to increase transparency around regulatory decision making. Alongside the earlier dismissal of the SEC’s enforcement action and the resolution of its FOIA case against the FDIC, the settlement closes another significant chapter in the exchange’s ongoing engagement with U.S. financial regulators.
