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Coinbase has requested insight into the US Securities and Exchange Commission's (SEC) enforcement actions against the crypto industry.
In a March 3 statement on X, Coinbase chief legal officer Paul Grewal announced that the exchange had submitted a Freedom of Information Act (FOIA) request to the SEC.
We know the previous @SECgov’s regulation-by-enforcement approach cost Americans innovation, global leadership, and jobs, but how much did it cost in taxpayer dollars? Today @Coinbase submitted a FOIA request asking the SEC to explain how much its war on crypto cost taxpayers.…
— paulgrewal.eth (@iampaulgrewal) March 3, 2025
"What do we hope to find out? How many investigations and enforcement actions were brought – and how much they cost; how many employees worked on these investigations/enforcement actions – and how much they cost; how many third-party contractors were used in these investigations/enforcement actions – and how much they cost," he explained.
The request seeks to uncover the number of investigations and enforcement actions taken against crypto companies between April 17, 2021, and January 20, 2025, as the exchange seeks to understand the extent of SEC resources dedicated to these efforts, including employee involvement, third-party contractors, and the overall cost to taxpayers.
“We know the previous SEC’s regulation-by-enforcement approach cost Americans innovation, global leadership, and jobs, but how much did it cost in taxpayer dollars?” Grewal asked.
He also pressed for specifics on the SEC’s now-restructured Crypto Assets and Cyber Unit, questioning, “what was their budget, how many employees worked on it, how much did those employee hours cost?”
We also want to know more about the previous SEC’s infamous “Crypto Assets and Cyber Unit” within the Enforcement Division – what was their budget, how many employees worked on it, how much did those employee hours cost? 3/4
— paulgrewal.eth (@iampaulgrewal) March 3, 2025
The SEC’s Crypto Assets and Cyber Unit was originally created in 2017 to tackle fraudulent and unregistered crypto offerings and platforms. However, on February 20, it was replaced by the Cyber and Emerging Technologies Unit (CETU).
Coinbase's push for transparency comes as the regulator dismisses a series of previous investigations into the crypto industry, including cases against Yuga Labs, Kraken, Uniswap Labs, Robinhood, OpenSea, and even Coinbase.
The regulator sued Coinbase in June 2023 on the basis that Coinbase was operating as an unregistered securities exchange, broker, and clearing agency.
Meanwhile, Coinbase CEO Brian Armstrong has pushed back against President Donald Trump's crypto reserve, which includes Bitcoin, Ethereum, XRP, Solana, and Cardano.
Blockhead
Armstrong argued that having Bitcoin alone in the reserve would be the “best option,” calling it a successor to gold.
"Just Bitcoin would probably be the best option - simplest, and clear story as successor to gold," he stated, adding, "If folks wanted more variety, you could do a market cap weighted index of crypto assets to keep it unbiased."
Excited to learn more. Still forming an opinion on asset allocation, but my current thinking is:
— Brian Armstrong (@brian_armstrong) March 3, 2025
1. Just Bitcoin would probably be the best option - simplest, and clear story as successor to gold
2. If folks wanted more variety, you could do a market cap weighted index of crypto… https://t.co/jv8Gcn8N2S
