Coinbase is once again active in its confrontation with the SEC, requesting information disclosure about spending on crypto investigations via the Freedom of Information Act.
Coinbase and the Freedom of Information Act
Coinbase has filed a request under the Freedom of Information Act (FOIA) to reveal how much was spent in investigations and enforcement actions against the crypto industry during Gary Gensler's tenure. This step aims to assess the use of taxpayer funds for crypto industry oversight. Additionally, Coinbase requests details on SEC employees' working hours, contracts, and other aspects related to policies seen as a war on cryptocurrencies.
Regulatory Uncertainty and Its Impact on Innovation
According to Coinbase's Chief Legal Officer, Paul Grewal, the SEC's law enforcement-focused approach creates significant hurdles for innovation. He emphasizes that the SEC's actions could undermine the U.S.'s leadership in the crypto industry. Coinbase also seeks specific data about the SEC division formerly known as the Crypto Assets and Cyber Unit, including its budget, staff numbers, and employee compensation. The goal is to understand if there is a specific policy targeting the crypto industry alone.
Changes in the SEC's Approach?
This move by Coinbase follows the SEC's decision to drop a lawsuit against the company in February, which surprised many given the regulator's previously aggressive strategy towards cryptocurrencies. This decision sparked speculation about the SEC potentially softening or even reassessing its approach to digital asset regulation. However, Coinbase seems unsatisfied with the dropped lawsuit alone. The FOIA request aims at further uncovering how public resources have been used against the crypto industry.
Coinbase's actions are viewed as a strategy to press the SEC for more transparent policies. However, it's unclear how the SEC will respond: will it become more transparent, or will it reinforce its stance?
