The SEC settles with Coinbase over its missing Gary Gensler texts

The U.S. Securities and Exchange Commission (SEC) agreed to pay $150,000 to settle a Freedom of Information Act (FOIA) lawsuit filed by History Associates Inc., which was acting on behalf of Coinbase. The lawsuit arose after the SEC failed to fully respond to several records requests submitted in 2023 seeking documents related to its investigations into Ethereum’s transition from a proof-of-work to a proof-of-stake consensus mechanism, as well as earlier crypto enforcement actions involving figures such as Zachary Coburn and Enigma MPC.

The litigation forced the SEC to produce thousands of documents, including communications involving then-SEC Chair Gary Gensler. However, the case revealed significant issues with the agency’s record-keeping: it was reported in September 2025 that text messages from Gensler’s phone dated October 2022 to September 2023 had been deleted. Ultimately, the SEC disclosed that 21 phones belonging to top officials had been wiped, including five phones connected to the individuals relevant in the Coinbase case. The agency informed the National Archives about these deletions the previous July.

Brian Armstrong, CEO of Coinbase, called the settlement a major victory for the cryptocurrency industry and highlighted its importance for government transparency and accountability. He linked the revelations about Gensler’s deleted texts to other high-profile cases, such as evidence being buried during the 2023 banking crisis, asserting that the outcome was significant not just for Coinbase but for all Americans and companies demanding openness from government agencies.

With this settlement, the SEC has agreed to provide the remaining responsive documents and cover legal fees totaling $150,000. After the final production of records, the federal lawsuit, which has been ongoing for over two years, will be dismissed, bringing the matter to a close.