SEC Pays $150,000 to Settle Coinbase Suit Over Gensler’s Missing Texts

The SEC has agreed to pay $150,000 in legal fees to end a two-year lawsuit brought by Coinbase seeking internal agency records tied to its crackdown on crypto firms during the Biden administration.

Case Tied to Deleted Gensler Texts

Coinbase filed the suit after a 2025 internal report revealed the SEC had lost nearly a year’s worth of former Chair Gary Gensler’s text messages due to what the agency called avoidable errors. Coinbase Chief Legal Officer Paul Grewal wrote in a Wall Street Journal op ed that the regulator responsible for policing corporate record keeping had failed to preserve its own communications during a critical enforcement period. He said the SEC has since fixed its retention policies.

Part of a Pattern of Settlements

This marks another legal win for Coinbase under the current administration, as the SEC under Chair Paul Atkins has taken a friendlier stance toward crypto, dropping several enforcement cases in 2025. In February, Coinbase also settled with the FDIC for $188,440 after a court found the agency violated the Freedom of Information Act.

Grewal, Coinbase’s chief legal officer since 2020, will move to an advisory role starting July 31. Molly Abraham and Ryan VanGrack will take over as general counsel and vice chair.