SEC and Coinbase Reach Settlement in Gensler-Era Lawsuit

Odaily Odaily Planet Daily News The U.S. SEC and Coinbase reached a settlement on Wednesday, ending a multi-year legal dispute over how records requests were handled during the Gensler era.

According to court documents, the SEC agreed to pay $150,000 in legal fees to History Associates and release two documents that were previously withheld. Additionally, the SEC will review its records management system, as well as how communications such as text messages are preserved.

The case originated from Coinbase suing the SEC and FDIC separately in 2024 through the consulting firm History Associates, accusing the two regulatory agencies of not complying with Freedom of Information Act (FOIA) requests. Coinbase stated that these records requests were related to whether regulators were attempting to sever the connection between the crypto industry and the banking system.

Coinbase Chief Legal Officer Paul Grewal wrote in a Wall Street Journal op-ed that former SEC Chairman Gary Gensler had launched a "litigation campaign" against the crypto industry. During Gensler's tenure, the SEC sued Coinbase and several other crypto companies, accusing them of failing to comply with federal securities registration requirements.

Grewal stated that this settlement has long-term implications, as the FDIC and SEC are rewriting their disclosure and record-keeping practices, which could enhance regulatory transparency and limit the ability of regulators to overreach behind closed doors in the future.