Coinbase has filed a Freedom of Information Act (FOIA) request with the US Securities and Exchange Commission (SEC), seeking transparency on how much taxpayer money was spent on the agency’s crypto regulation-by-enforcement approach under former Chair Gary Gensler.

The request, submitted on March 3, aims to uncover the full extent of the SEC’s expenditures on investigations and enforcement actions related to digital assets, exchanges, staking, and lending between April 17, 2021, and Jan. 20, 2025. 

Coinbase’s request comes amid growing criticism that the previous administration’s aggressive stance on crypto stifled innovation, cost jobs, and lacked clear regulatory guidelines.

Coinbase's FOIA request seeks detailed financial disclosures on the total annual cost of SEC investigations and enforcement actions related to crypto. It also asks for information on the number of SEC employees assigned to digital asset enforcement, their total compensation, and hours worked. 

Additionally, Coinbase is requesting details on the SEC’s spending on third-party contractors, including expert witnesses and consultants hired for crypto-related cases. Another major point of interest is the budget of the SEC’s Crypto Assets and Cyber Unit, which led many of the agency’s enforcement actions.

Paul Grewal, Coinbase’s Chief Legal Officer, announced the move on X (formerly Twitter), stating:

“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.”

Coinbase argues that regulatory actions must be based on facts, not politics, and has long criticized the SEC for failing to provide clear guidance to crypto firms before pursuing enforcement.

The exchange has also pointed to the shifting regulatory landscape under the new SEC leadership and called for transparency into the previous administration’s actions. Grewal emphasized that Coinbase will continue pressing for full disclosure:

“We’ll never stop fighting for government transparency on behalf of our customers and this industry. It may take time to get the full picture, but I think we’ve shown that we will do what it takes for as long as it takes.”

The SEC has yet to comment on the FOIA request. If granted, the disclosures could provide insights into how much of the agency’s resources were allocated toward digital asset enforcement and whether the spending aligned with broader investor protection goals.

Crypto industry participants have welcomed the request, arguing that understanding the SEC’s spending habits could help shape future regulatory approaches and ensure taxpayer money is used efficiently.

The FOIA request underscores Coinbase’s ongoing legal and political battle with U.S. regulators, as the company continues to push for a clear, rules-based framework for digital assets rather than retrospective enforcement actions.

The SEC is legally required to respond to the FOIA request within 20 business days. However, depending on the complexity of the request, the process could take months or even years.