SEC settles Coinbase suit over ‘text messages that disappeared’
The SEC agreed to pay Coinbase $150,000 in legal fees to resolve a two-year lawsuit over internal agency records tied to the Biden-era crypto crackdown. Coinbase had sought documents to investigate alleged “crypto by enforcement,” and later reporting showed the SEC deleted nearly a year of former Chair Gary Gensler’s texts because of avoidable errors. Coinbase said the settlement confirms problems in the SEC’s recordkeeping and that the agency has since improved its retention policies. The deal is another win for Coinbase under the Trump administration, as the SEC has taken a more crypto-friendly stance and dropped several major enforcement cases in 2025. Coinbase recently won a similar FOIA-related settlement with the FDIC. Separately, Coinbase legal chief Paul Grewal will move to an advisory role on July 31, with two legal vice presidents taking over leadership roles.
