The US Securities and Exchange Commission agreed to pay $150,000 in legal fees to settle a lawsuit with Coinbase regarding the loss of Gary Gensler’s text messages. This settlement ends a two-year dis
In a recent development, the U.S. Securities and Exchange Commission (SEC) has agreed to pay $150,000 in legal fees to settle a lawsuit with Coinbase. The case stemmed from an incident where nearly a year’s worth of former SEC Chair Gary Gensler's text messages were lost due to 'avoidable errors,' according to an internal report published in 2025.
The dispute began when Coinbase sought internal documents from the agency during the Biden-era crackdown on crypto. The legal battle lasted for two years, with Coinbase accusing the SEC of mishandling its own records and failing to maintain proper documentation standards. In a Wall Street Journal op-ed, Paul Grewal, Coinbase’s chief legal officer, highlighted these issues, stating that 'the agency tasked with policing corporate record-keeping somehow lost reams of its own text messages between Mr. Gensler and other officials during the most intense period of the anti-crypto campaign.'
This settlement marks a significant moment in the ongoing crypto regulatory landscape. It comes after Coinbase had previously achieved a legal victory, reaching an agreement with the Federal Deposit Insurance Corporation (FDIC) to pay $188,440 and revise transparency practices following a court ruling on violations of the Freedom of Information Act.
The resolution also underscores changes in SEC leadership under Paul Atkins. Under his tenure, the agency has taken a more crypto-friendly approach, dropping several high-profile enforcement actions against cryptocurrency companies including Coinbase. This includes Grewal’s statement that they had 'successfully uncovered dozens of crypto “pause letters”'—indisputable proof of OCP2.0 and coordinated efforts to sideline the industry.
The settlement has broader implications for both Coinbase and the regulatory environment surrounding cryptocurrencies. It highlights the ongoing challenges in maintaining proper record-keeping practices, especially during periods of heightened scrutiny. Additionally, it signals a potential shift towards more lenient regulation under new leadership at the SEC, which could impact future enforcement actions against crypto firms.
As part of this agreement, Grewal is set to transition from his role as chief legal officer and take on an advisory position at Coinbase starting July 31. Molly Abraham and Ryan VanGrack are expected to become general counsel and vice chair respectively.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.