The Securities and Exchange Commission will pay Coinbase $150,000 and update its record-retention policies to settle a Freedom of Information Act lawsuit. The deal ends a legal fight over how the agency handled requests for documents tied to cryptocurrency regulation.
Why Coinbase sued
Coinbase filed the FOIA suit after the SEC failed to produce records the company had requested. The exchange wanted internal communications and guidance about how the agency treats digital assets. The SEC initially argued that some documents were exempt from disclosure. But the settlement avoids a court ruling on those claims.
What the settlement includes
Under the agreement, the SEC will pay Coinbase $150,000 to cover legal fees and other costs. More importantly, the agency will revise its record-retention policies. The changes aim to improve how the SEC preserves and produces electronic records, especially those related to emerging technologies like crypto. The SEC did not admit wrongdoing.
Broader implications
The settlement is a small but concrete win for Coinbase, which has been locked in a broader regulatory battle with the SEC. The company has argued that the agency's approach to crypto lacks clarity. While the $150,000 payment is modest, the policy revisions could make future FOIA requests easier to pursue. The SEC must now implement the changes as part of the agreement. No timeline for those updates has been disclosed.
