U.S. SEC Agrees to Pay $150,000 to Settle FOIA Lawsuit over Ethereum Investigation Records, Will Submit Remaining Documents

Odaily Planet Daily News The U.S. Securities and Exchange Commission (SEC) has agreed to pay $150,000 to resolve a Freedom of Information Act (FOIA) lawsuit concerning its Ethereum investigation records. According to a joint case status report filed on July 22, the SEC and plaintiff History Associates Inc. have reached a settlement and have requested the U.S. District Court for the District of Columbia to dismiss the case.

Under the agreement, the SEC will continue to provide the remaining relevant documents and pay a fixed amount to cover the plaintiff's legal fees. The lawsuit was filed by History Associates in June 2024. The firm, commissioned by Coinbase, sought to compel the SEC to disclose materials related to its regulatory investigation of Ethereum, including investigation files on Zachary Coburn and Enigma MPC, as well as records of regulatory discussions concerning Ethereum's transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS).

Previously, this lawsuit compelled the SEC to deliver thousands of documents. The court also ordered the SEC to prioritize providing relevant communications sent, received, or reviewed by then-Chairman Gary Gensler regarding Ethereum's migration from PoW to PoS.

During the case, the SEC sparked controversy by deleting some of Gensler's text message records. The SEC's Office of Inspector General previously disclosed that the agency accidentally deleted Gensler's text messages from October 2022 to September 2023. Subsequent documents revealed that the SEC also erased data from 21 senior officials' mobile phones.

Coinbase CEO Brian Armstrong stated that the incident highlights transparency issues within government agencies during the crypto regulatory process and noted that the related lawsuit aims to promote public access to the basis for regulatory decisions. As the SEC completes the submission of the remaining documents, this lawsuit, which has lasted over two years, will formally conclude. (CoinDesk)