Coinbase has escalated its legal dispute with the SEC by filing a motion for a hearing regarding the agency's failure to comply with Freedom of Information Act (FOIA) requests. The SEC’s investigation revealed that nearly a year’s worth of communications, including text messages from former Chair Gary Gensler, were deleted due to 'avoidable' errors. Coinbase is seeking the court's intervention to compel the SEC to conduct a thorough search for all requested records, particularly communications related to Ethereum’s transition to proof-of-stake. Additionally, Coinbase proposes a further hearing post-discovery to discuss potential remedies, including attorney fees, if needed. The SEC acknowledged the situation and stated that transparency is a core principle of its operations. However, in 2023, the SEC alleged that Coinbase violated securities laws, prompting Coinbase to argue that Gensler's communications are crucial for its legal defense.

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