Coinbase CLO Paul Grewal Calls for Subpoenas Amidst Ongoing Regulatory Transparency Battle

Paul Grewal, Chief Legal Officer at Coinbase, stated on social media that specific revelations "warrant subpoenas and sworn testimony," signaling continued legal friction between the cryptocurrency exchange and U.S. financial regulators. The tweet, posted by @paulgrewal.eth, did not specify the exact content of the "two paragraphs" but comes amidst Coinbase's long-standing efforts to compel greater transparency from agencies like the Federal Deposit Insurance Corporation (FDIC) and the Securities and Exchange Commission (SEC).

The statement likely refers to ongoing developments in Coinbase's Freedom of Information Act (FOIA) litigation against the FDIC. In February 2025 testimony before the U.S. House Committee on Financial Services, Grewal detailed how the FDIC had provided "highly redacted versions" of "pause letters" – communications sent to banks discouraging crypto-related activities – in November 2024. A court subsequently ordered the FDIC to re-review these documents, expressing concern over the agency's "lack of good-faith effort in making nuanced redactions" and stating that the FDIC "cannot simply blanket redact everything that is not an article or preposition."

This judicial admonition underscores Coinbase's broader fight for regulatory clarity and accountability within the digital asset space. The company has consistently argued that regulators have engaged in a "debanking" campaign against the crypto industry, often through opaque means and without formal rulemaking. The FOIA lawsuit aims to expose these alleged behind-the-scenes pressures.

Beyond the FDIC, Coinbase is also engaged in significant legal battles with the SEC. In January 2025, a New York judge granted Coinbase the right to an interlocutory appeal in the SEC's enforcement case against the exchange, citing conflicting rulings on the application of the Howey Test to digital assets. Separately, the Third Circuit Court of Appeals ordered the SEC to provide a more reasoned explanation for its rejection of Coinbase's petition for clearer crypto regulations, finding the SEC's previous response "conclusory and insufficiently reasoned."

These legal victories, while partial, highlight the judiciary's role in scrutinizing regulatory actions and demanding greater transparency. Grewal's tweet reflects the ongoing need for formal legal processes, such as subpoenas and sworn testimony, to uncover the full extent of regulatory practices and ensure fair treatment for the cryptocurrency industry. The outcome of these legal challenges is expected to significantly shape the future regulatory landscape for digital assets in the United States.