US SEC settles FOIA lawsuit with Coinbase over lost messages, WSJ op-ed says

July 22 (Reuters) - Coinbase COIN.O has settled a Freedom of Information Act lawsuit against the U.S. Securities and Exchange Commission over records it sought from the agency, the cryptocurrency exchange's chief legal officer, Paul Grewal, said in a Wall Street Journal op-ed on Wednesday.

Grewal said the agency, which polices corporate record-keeping, had lost text messages between former Chair Gary Gensler and other officials after a process the SEC said "automatically wiped" certain data.

As part of the settlement, the SEC will pay $150,000 and fix its record-retention policies, he wrote.

SEC did not immediately respond to a Reuters request for comment.

Coinbase sued the SEC and the Federal Deposit Insurance Corp. in 2024, seeking documents it said would show a concerted effort by U.S. regulators to stamp out crypto companies.

The lawsuit sought additional communications from senior SEC officials, including Gensler.

Coinbase has scored major wins from the SEC under U.S. President Donald Trump, including the dismissal of a major lawsuit the regulator brought against the company under President Joe Biden.

It also championed a stablecoin bill passed by the U.S. Congress.

Reuters has reported that the SEC is preparing more industry-friendly policies, including one that would allow crypto companies to offer blockchain-based stocks.