Coinbase demands SEC disclosure of crypto enforcement spending, pushing for government transparency - IcoHolder.
In a bold move for financial transparency, Coinbase, the largest U.S. cryptocurrency exchange, has formally requested the U.S. Securities and Exchange Commission (SEC) to disclose how much taxpayer money has been spent on crypto enforcement over the past four years. The demand comes amid sweeping government accountability efforts led by the newly established Department of Government Efficiency (DOGE), spearheaded by billionaire entrepreneur Elon Musk.
Coinbase’s request, filed under the Freedom of Information Act (FOIA), seeks to uncover the extent of the SEC’s financial resources allocated to investigating and prosecuting cryptocurrency-related cases. Specifically, the exchange wants detailed data on investigations conducted between April 17, 2021, and January 20, 2025, including:
The number of enforcement actions against crypto firms.
The number of SEC employees involved.
The role of third-party contractors in investigations.
The total expenditures tied to these enforcement actions.
Paul Grewal, Coinbase’s Chief Legal Officer, took to the social media platform X (formerly Twitter) to emphasize the company’s commitment to holding regulators accountable. He underscored Coinbase’s mission to expose potential government overspending, particularly within the SEC’s "Crypto Assets and Cyber Unit," which was at the forefront of the agency’s crypto crackdown.
Coinbase’s move follows the broader push for fiscal responsibility championed by the Department of Government Efficiency, known by its fitting acronym, DOGE. Under Musk’s leadership, the agency has uncovered multiple cases of alleged wasteful government spending, prompting further calls for transparency across various federal agencies.
The SEC, which aggressively pursued regulatory actions against crypto firms under the Biden administration, recently dropped its latest case against Coinbase. However, instead of viewing this as a victory, the exchange is doubling down on its demand for full disclosure of the resources spent targeting the crypto industry.
Coinbase’s FOIA request is part of a broader battle between the crypto sector and regulators, with industry leaders frequently criticizing the SEC’s approach to enforcement. The outcome of this request could set a precedent for government accountability in the regulation of emerging financial technologies.
Grewal made it clear that Coinbase will not back down in its fight for transparency. "We’ll never stop fighting for government transparency on behalf of our customers and this industry," he stated, signaling that this is just the beginning of a deeper inquiry into regulatory spending.
As the battle over crypto regulation intensifies, Coinbase’s challenge to the SEC could have far-reaching implications, not only for the cryptocurrency industry but for the broader conversation around government spending and financial oversight.
