The U.S. Securities and Exchange Commission has agreed to pay Coinbase $150,000 to settle a Freedom of Information Act lawsuit. The money covers legal fees tied to the exchange's request for text messages that the agency says were lost under Chair Gary Gensler.
Why Coinbase sued
Coinbase filed the FOIA lawsuit after the SEC failed to produce records of work-related text messages sent by Gensler and other officials. The company argued the agency was withholding public records. The SEC later acknowledged the messages were missing — not because they were classified, but because they were never preserved.
What the settlement covers
The $150,000 payment goes to Coinbase for attorney fees and court costs. Paul Grewal, Coinbase's chief legal officer, announced the settlement. He did not say whether the SEC will now search for the lost messages or change its record-keeping practices.
Gensler's record-keeping under scrutiny
The case adds to a pattern of criticism over how the SEC handles its own communications. Gensler has pushed for stricter record-keeping rules for Wall Street firms. The settlement suggests the agency's own house may not be in order. The SEC did not comment on the settlement beyond the court filing.
What happens next
The settlement still needs a judge's approval. Coinbase has not said if it will pursue further action to recover the missing texts. The case is one of several FOIA disputes between the SEC and crypto companies.
