There’s something deeply ironic about the world’s most prominent publicly traded crypto exchange spending $500,000 to mail paper documents to its shareholders. Coinbase, a company built entirely on digital infrastructure, got stuck footing a six-figure postage bill because SEC rules still default to physical delivery for proxy materials and shareholder notices.
The good news: that may finally be changing. The SEC has submitted a new rule proposal titled “Electronic Delivery of Information Under the Federal Securities Laws” to the White House Office of Information and Regulatory Affairs for review. The timing feels almost like a direct response to the absurdity of forcing digital-first companies to stuff envelopes.
The cost of being old-school
Here’s the thing about SEC disclosure requirements. Unless a shareholder has specifically opted into electronic communications, public companies are required to send physical paper copies of proxy statements, annual reports, and other regulatory filings.
For a company like Coinbase, which serves a broad and diverse shareholder base, that translates into real money. The roughly $500,000 expense covers mailing cycles during the 2025 and 2026 proxy seasons.
