Coinbase Requests SEC to Reveal Spending on Crypto Enforcement Actions
Coinbase has filed a Freedom of Information Act (FOIA) request with the SEC, seeking details on taxpayer spending related to crypto enforcement actions during former Chair Gary Gensler’s leadership. The request aims to assess whether the SEC's regulatory approach was justified or excessive.
Key Points of the FOIA Request
- Disclosure of total expenditures on digital asset enforcement from April 17, 2021, to January 20, 2025.
- Total number of digital asset-related investigations conducted annually during that timeframe.
- Number of full-time employees involved in crypto cases, including salaries and benefits.
- Total hours spent by SEC employees on crypto and blockchain matters.
- Details on external contractors and consultants hired for crypto enforcement.
- Annual budget for the SEC's "Cyber Unit" or “Crypto Assets and Cyber Unit.”
Coinbase highlights that this information is missing from documents previously provided to Congress and is willing to cover processing fees for the request.
Context on Gensler’s SEC
Under Gensler, the SEC pursued aggressive enforcement against major firms like Binance and Coinbase, leading to criticism for stifling innovation. Recently, the new SEC leadership has dropped several high-profile cases against crypto companies, indicating a shift in regulatory strategy.
Critics of Gensler, including Gemini co-founder Tyler Winklevoss, have accused him of overreach and called for a boycott of any companies hiring him after his SEC tenure.