XRP Lawyer Bill Morgan Backs Coinbase in SEC Record Fight

• Lawyer Bill Morgan says Coinbase’s stance makes it harder to stay angry over its XRP delisting.
• Coinbase accuses the SEC of violating FOIA and seeks sanctions.
• SEC destroyed Gary Gensler’s text messages from October 2022 to September 2023.

Pro-XRP lawyer Bill Morgan said Coinbase is making it challenging to stay permanently angry at the exchange for delisting XRP. His remarks came as Coinbase escalated its fight with the U.S. Securities and Exchange Commission (SEC) over missing records tied to crypto oversight.

For context, Coinbase delisted XRP in January 2021 after the SEC sued Ripple, a decision that drew heavy criticism from XRP investors. Morgan’s comment reflects a shift in sentiment as Coinbase sharpens its case against the SEC in federal court over transparency failures.

Related: Bill Morgan Sets Standard Response to XRP Role as Ripple Expands Its Partnerships

Inspector General Finds Destroyed SEC Records

Court filings show Coinbase has pressed the SEC on Freedom of Information Act (FOIA) requests after an investigation revealed that nearly a year of Gary Gensler’s text messages, October 2022 to September 2023, were destroyed.

That period included the collapse of FTX, a wave of enforcement actions against crypto firms, and internal debate over Ethereum’s proof-of-stake transition. The SEC’s Office of Inspector General (OIG) also reported that texts from at least 21 senior officials may have been lost, and about 40 additional devices are still at risk because they were never properly backed up.

Coinbase Accuses SEC of Violating Court Orders

According to filings, the SEC failed to fully comply with court orders to search and produce communications. The agency admitted it lacked a system to search some phones and instead relied on limited workarounds. 

Even in searches it conducted, the SEC used restrictive keywords such as “securit*” alongside “ETH ” and “proof of stake,” which may have excluded relevant messages.

The agency also never told the court or FOIA requesters that records had been destroyed, despite federal regulations requiring disclosure. Coinbase argues the omissions caused irreparable harm because the missing texts cover the exact window when FOIA requests were first filed.

Coinbase’s Legal Response

Coinbase’s Chief Legal Officer, Paul Grewal, said on X that the SEC “destroyed documents they were required to preserve and produce”. He emphasized that the same regulator that fined private firms more than $1 billion for recordkeeping failures committed similar violations.

Grewal confirmed that Coinbase is requesting expedited discovery, sanctions, and the immediate production of all responsive records from the court. The company also seeks a hearing to determine what remedial steps should be taken, including potential disciplinary investigations into SEC personnel.

Related: Crypto Exchange Coinbase Secures License To Operate in Singapore