SEC Reaches Settlement with Coinbase Over Missing Gensler Texts

SEC Settles Lawsuit Over Missing Documents Related to Ethereum

The U.S. Securities and Exchange Commission (SEC) has agreed to pay $150,000 to settle a federal Freedom of Information Act (FOIA) lawsuit that raised questions about what former Chair Gary Gensler knew regarding Ethereum. This lawsuit was officially addressed in a joint status report filed on July 22, 2026.

Details of the Settlement

After a two-year legal battle, the SEC and History Associates Inc., which operated on behalf of Coinbase, requested the U.S. District Court for the District of Columbia to dismiss the case following the settlement agreement. As part of the resolution, the SEC will produce the remaining records related to its investigations into Ethereum and pay the agreed-upon fee to cover the plaintiff’s legal costs.

Background of the Lawsuit

History Associates initiated the lawsuit in June 2024, building on three public records requests made in the previous year. These sought documents concerning SEC investigations into Zachary Coburn and Enigma MPC, as well as records pertaining to Ethereum’s transition from a proof-of-work to a proof-of-stake system.

The court mandated the SEC to prioritize the release of communications sent or received by Gensler related to Ethereum’s switch in protocols.

Issues with Document Production

Progress in the case encountered delays when the SEC’s Inspector General revealed in September 2025 that text messages from Gensler, covering communications from October 2022 to September 2023, had been accidentally deleted. The agency also reported having wiped data from 21 phones belonging to top officials, with five phones belonging to the same employees involved in the Coinbase case.

Reactions to the Settlement

Brian Armstrong, CEO of Coinbase, called the settlement a major victory for the crypto industry. He expressed his views on social media, comparing this ruling to the FDIC’s mishandling of evidence during the 2023 banking crisis. Armstrong noted, “The Gensler SEC deleted texts at the height of the anti-crypto campaign…This is not only for us, but for every American and every American company expecting transparency and accountability from the government.”

Conclusion

The dismissal of this lawsuit resolves over two years of contention surrounding document requests made to the SEC. Upon completion of the remaining records production, the case will be officially closed.