Coinbase has reached a settlement with the Securities and Exchange Commission (SEC) following a lawsuit filed by the cryptocurrency exchange. The legal action was initiated under the Freedom of Information Act (FOIA) to compel the SEC to produce records related to text messages.
In a decision by a federal court, the SEC was ordered to respond to Coinbase's FOIA request. As part of the settlement, the SEC agreed to produce the requested text messages and pay Coinbase $150,000.
Coinbase had sued the SEC in February, alleging that the agency had failed to respond to its FOIA request seeking records concerning communications between SEC officials and third parties, specifically regarding the classification of digital assets and the SEC's engagement with the crypto industry. The exchange argued that the SEC's non-compliance hindered its ability to understand the agency's regulatory stance.
The settlement resolves the lawsuit and ensures the release of the text messages, providing Coinbase with insights into the SEC's internal deliberations and communications relevant to the digital asset market.