The U.S. Securities and Exchange Commission agreed to pay Coinbase $150,000 in legal fees to settle a lawsuit over internal agency records, according to an agreement filed on Wednesday. The settlement ends a two-year dispute in which Coinbase sought internal SEC documents from the period when the regulator pursued its crypto enforcement campaign. The case focused on how the SEC made decisions during a period when crypto companies argued they were being pushed out of the regulated financial system without transparent policy standards. The settlement follows an internal 2025 report that found the SEC had deleted nearly a year of former Chair Gary Gensler's text messages due to errors, strengthening Coinbase's argument that the regulator had failed to preserve its own communications during a critical regulatory period.
SEC Agrees to Pay Coinbase $150,000 in Legal Fees Settlement
The agreement filed on Wednesday requires the SEC to pay $150,000 to Coinbase. Coinbase chief legal officer Paul Grewal stated in an op-ed published by the Wall Street Journal on Wednesday that the SEC will pay the amount as an "award" and has fixed its record retention policies. Grewal wrote 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."
The settlement lands as the Biden-era enforcement strategy continues to be reassessed under different SEC leadership. The SEC, now led by Paul Atkins, has dropped several high-profile enforcement actions against crypto companies, including Coinbase, in 2025.
Records Dispute Centered on SEC Internal Documents
The two-year dispute involved Coinbase seeking internal SEC documents to support its claims that the agency relied on enforcement actions rather than clear rulemaking. The exchange argued that transparency was needed to understand whether agencies had coordinated pressure against the crypto sector. The case focused on how the SEC made decisions during a period when crypto companies argued they were being pushed out of the regulated financial system without transparent policy standards.
The internal 2025 report found the SEC had deleted nearly a year of former Chair Gary Gensler's text messages due to "avoidable" errors. This finding gave Coinbase a stronger procedural argument that the regulator demanding strict recordkeeping from companies had failed to preserve parts of its own internal communications during a critical regulatory period.
Coinbase Records Litigation Strategy Includes FDIC Settlement
The SEC settlement follows another records-related outcome for Coinbase. In February, the exchange reached a settlement with the Federal Deposit Insurance Corporation, with the FDIC agreeing to pay $188,440 in legal fees and revise parts of its transparency practices after a federal court found it had violated the Freedom of Information Act.
Grewal stated at the time in an X post in February that the litigation uncovered dozens of crypto "pause letters." He wrote: "The years of litigation were worth it. We successfully uncovered dozens of crypto 'pause letters'—indisputable proof of OCP2.0 and the coordinated effort to sideline the industry."
Paul Grewal Transitions to Advisory Role on July 31
The settlement comes as Grewal prepares to step back from his role as Coinbase's chief legal officer. He has served in the role since 2020 and is set to move into an advisory position starting July 31. Coinbase legal vice presidents Molly Abraham and Ryan VanGrack are expected to take on expanded roles as general counsel and vice chair, respectively.
FAQ
What amount did the SEC agree to pay Coinbase in the settlement?
The SEC agreed to pay Coinbase $150,000 in legal fees to settle the records dispute, according to the agreement filed on Wednesday.
What was the duration of the records dispute between Coinbase and the SEC?
The records dispute lasted two years, with Coinbase seeking internal SEC documents from the period when the regulator pursued its crypto enforcement campaign.
When does Paul Grewal transition from his role as Coinbase chief legal officer?
Paul Grewal is set to move into an advisory position starting July 31, after serving as Coinbase's chief legal officer since 2020.
