Svmuu News: The U.S. SEC reached a settlement with Coinbase on Wednesday, ending a years-long legal dispute between the two parties over the handling of record requests during the Gensler era.
According to court documents, the SEC agreed to pay History Associates $150,000 in attorney’s fees and to release two documents that had previously been withheld. In addition, the SEC will review its records management system and the way it preserves communications, such as text messages.
The case originated in 2024 when Coinbase, through the consulting firm History Associates, filed separate lawsuits against the SEC and the FDIC, alleging that the two regulatory agencies had failed to comply with Freedom of Information Act (FOIA) requests. Coinbase stated that these record requests pertained to whether the regulators were attempting to sever the crypto industry’s ties to the banking system.
Coinbase Chief Legal Officer Paul Grewal stated in a Wall Street Journal op-ed that former SEC Chair Gary Gensler had launched a “litigation campaign” against the crypto industry. During Gensler’s tenure, the SEC sued Coinbase and several crypto companies, accusing them of failing to comply with federal securities registration requirements.
Grewal noted that this settlement has long-term implications, as the FDIC and the SEC are rewriting disclosure and record-keeping practices, which are expected to enhance regulatory transparency and limit the regulators’ ability to excessively expand their authority behind closed doors in the future.