SEC Agrees to Improve Record-Retention Practices Amid FOIA Settlement

The SEC and Coinbase have settled a long-running FOIA case that centered on missing text messages between the two parties. The settlement, reached in July 2026, requires the SEC to pay $150,000 in fees and produce two previously withheld documents related to crypto policy.

The dispute began when Coinbase pushed the SEC for records under the Freedom of Information Act (FOIA). The SEC initially claimed it had searched its systems but failed to provide all relevant messages. However, an investigation revealed that certain text messages had been automatically wiped from the system, keeping the FOIA fight alive and forcing a policy review.

Coinbase framed the dispute as a transparency issue, arguing that the public has a right to know how crypto policy is made, especially when it affects billions in market value. While the settlement may not directly impact ongoing enforcement cases, it could change timelines and the completeness of administrative records in rule challenges.