The SEC has settled a lawsuit with Coinbase, agreeing to pay $150,000 over missing records related to Ethereum investigations.
Settlement Ends Long-Standing Legal Battle Over Ethereum Records
The U.S. Securities and Exchange Commission (SEC) has reached a settlement with Coinbase, agreeing to pay $150,000 to resolve a Freedom of Information Act (FOIA) lawsuit related to its investigations into Ethereum. This agreement, noted in a court filing on July 22, aims to conclude a lengthy dispute regarding the agency's handling of records involving former SEC Chair Gary Gensler.
Coinbase's legal representatives, History Associates Inc., initiated the lawsuit in June 2024 after the SEC failed to adequately respond to requests for documents concerning Ethereum's transition to a proof-of-stake system and previous enforcement actions in the crypto space.
As part of the settlement, the SEC will release the remaining pertinent documents and compensate History Associates for legal expenses. Both parties have requested the U.S. District Court for the District of Columbia to dismiss the case following the settlement.
The lawsuit prompted the SEC to disclose thousands of documents, revealing that critical texts and data from Gensler's phone had been deleted. The SEC reported that 21 phones belonging to senior officials had been wiped, including five related to the Coinbase case. This discovery halted progress on document production in September 2025.
Brian Armstrong, CEO of Coinbase, characterized the settlement as a significant win for the crypto industry, highlighting the importance of transparency from government agencies. He drew parallels between this case and another involving the Federal Deposit Insurance Corporation (FDIC), stating, "This victory is not just for us, but for all Americans and businesses expecting accountability and transparency from the government."
With the settlement in place, the case will be officially dismissed once the SEC completes the release of the remaining documents, marking the end of over two years of legal challenges related to the document requests.
