SEC Coinbase FOIA settlement ended a two-year dispute after the US Securities and Exchange Commission agreed to pay Coinbase $150,000 in legal fees. The case centered on internal records tied to the agency’s crypto enforcement work under former Chair Gary Gensler. As a result, one of Coinbase’s legal actions over federal crypto policy during 2022 to 2024 has now closed.
The dispute focused on records sought under the Freedom of Information Act. Coinbase sued both the SEC and the Federal Deposit Insurance Corporation. The company argued that regulators pushed banks to cut ties with crypto firms, a pattern the industry called Operation Choke Point 2.0.
SEC Coinbase FOIA Settlement Closes Dispute
The SEC Coinbase FOIA settlement follows findings from the agency’s inspector general in 2025. The review found that text messages from a key period were lost. Notably, that period included the aftermath of the FTX collapse.
According to the article, an automated policy triggered an enterprise wipe of Gary Gensler’s device. Paul Grewal, chief legal officer of Coinbase, told Bloomberg that the current SEC admits the agency acted wrongly and wants to prevent a repeat. However, the settlement resolved the case through legal fees, not a court ruling on the FOIA claims.
FDIC Case Had Already Been Resolved
The FDIC settled its part of the same litigation track in February. It paid more than $188,000 in legal fees. Additionally, it released correspondence that Coinbase said showed the agency discouraging banks from crypto-related activity.
Since the change in administration, the SEC has dropped several major crypto enforcement actions, including its lawsuit against Coinbase. The agency is also drafting rules that would let brokers offer blockchain-based stocks. Meanwhile, the settlement comes after several 2026 crypto listings, including Circle, BitGo, and Bullish.
Both the SEC and FDIC cases have now ended through fee settlements rather than court decisions on the underlying FOIA dispute.
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Source: Finance Magnates
