Coinbase Seeks Court Order Over SEC's Lost Text Messages

Coinbase has taken legal action against the U.S. Securities and Exchange Commission (SEC) following the agency's admission that it had lost nearly a year's worth of text messages from former Chair Gary Gensler. The missing records, which span from October 2022 to September 2023, are a significant development in Coinbase's ongoing legal disputes with Washington regulators. The crypto exchange contends that these communications may be vital to its defense in cases involving the regulation of cryptocurrency.

The filing, made by Coinbase on September 11, 2025, focuses on findings from the SEC's Office of Inspector General, which revealed that the SEC had inadvertently deleted text messages from Gensler and other high-ranking officials. Coinbase argues that the SEC's failure to maintain these records constitutes a violation of its obligations under the Freedom of Information Act (FOIA), especially given that the company had requested all communications related to crypto regulation and enforcement in 2023 and 2024.

One of the most contentious issues revolves around the SEC's actions regarding the crypto industry, particularly Ethereum's transition to a proof-of-stake consensus mechanism. Coinbase has argued that these private communications could offer insight into the SEC's internal decision-making process, potentially influencing its regulatory stance on cryptocurrencies. In its motion, Coinbase has asked the court to compel the SEC to produce all relevant communications, including those tied to the Ethereum upgrade.

The SEC has responded to these allegations, emphasizing its commitment to transparency. A spokesperson for the agency stated that when Chairman Gary Gensler became aware of the situation, he directed staff to conduct a thorough review of what had happened and to take corrective measures to ensure that such an incident does not occur again in the future.