Coinbase has escalated its legal battle with the U.S. Securities and Exchange Commission (SEC), zeroing in on deleted text messages from former SEC Chair Gary Gensler and alleged failures in responding to multiple Freedom of Information Act (FOIA) requests. The crypto exchange filed a formal motion on Thursday, urging the court to hold a hearing regarding the SEC’s handling of internal records—particularly in light of findings from the agency’s own Office of the Inspector General (OIG).
Coinbase Demands Answers on Deleted Gensler Messages
According to the OIG investigation, the SEC deleted nearly a full year’s worth of text messages from Gary Gensler due to what it called “avoidable” errors. Coinbase argues that these deletions have significantly impacted public transparency, especially considering the ongoing regulatory scrutiny of the cryptocurrency sector.
The exchange is now asking the court to compel the SEC to produce all relevant communications that may have been excluded from earlier FOIA responses. Coinbase believes that the deleted messages may include critical information regarding Ethereum’s transition from proof-of-work to proof-of-stake—an event that has drawn considerable regulatory attention.
FOIA Requests and Calls for Discovery Hearing
In 2023 and 2024, Coinbase submitted multiple FOIA requests related to the SEC’s internal communications and policy deliberations. However, the exchange claims the SEC failed to conduct a comprehensive search—particularly of Gensler’s communications. Coinbase says this oversight undermines the FOIA process and deprives the public of transparency in a time of major regulatory shifts in the digital asset industry.
The motion also suggests that a follow-up hearing should be held after the discovery process to evaluate potential remedies. Among those, Coinbase is asking the court to consider awarding attorney fees due to what it views as the SEC’s inadequate response and lack of transparency.
While Coinbase intensifies its legal strategy, the SEC maintains that it is committed to transparency. A spokesperson for the Commission stated that internal measures are being implemented to prevent similar mishandling of records in the future.
As the legal standoff continues, this case may have wider implications—not only for how the SEC handles internal documentation, but also for how it engages with the crypto industry at large.
