Coinbase Seeks Sanctions Over SEC’s Destroyed Crypto Texts
Coinbase has launched a FOIA lawsuit against the SEC, accusing the regulator of destroying and withholding key text messages related to cryptocurrency enforcement decisions. The Coinbase FOIA lawsuit cites an OIG report that the SEC lost former Chair Gary Gensler’s messages from October 2022 to September 2023 and failed to preserve records from over 20 senior officials.
Coinbase argues this “destroy-and-delay” approach violates federal record-keeping laws and undermines SEC transparency. The exchange is seeking expedited data searches, production of remaining communications, discovery into the scope of spoliation and court-imposed sanctions against the SEC.
This case highlights growing tensions in crypto regulation. Traders should watch for potential shifts in regulatory oversight and transparency, as the outcome could set a precedent for how digital asset records are preserved.
Neutral
This news centers on a legal dispute over record-keeping at the SEC and does not directly affect any specific cryptocurrency’s fundamentals or market dynamics. While it may influence regulatory transparency in the crypto sector, it is unlikely to cause immediate price movements. Traders should monitor potential shifts in oversight but expect neutral impact on crypto prices.