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Coinbase Challenges SEC’s $2.6 Billion Budget Request
Recently, Coinbase raised objections to the Securities and Exchange Commission’s (SEC) proposed $2.6 billion budget for the 2025 fiscal year. A Coinbase representative expressed frustration, stating,
“Yet again the SEC asks for more money that will go to regulation by enforcement when it has used none of its massive budget for real crypto rulemaking that would actually foster regulatory clarity.”
The SEC’s budget request includes a substantial allocation of $812.4 million to enforcement, marking an increase from $675.6 million in 2024. SEC Chair Gary Gensler defended the budget, claiming that the additional funds would expand the Division of Enforcement by 27 full-time equivalent positions to 1,447. This expansion aims to enhance the regulator’s ability to investigate misconduct on a larger scale and pursue more complex lawsuits.
Coinbase’s Persistent Calls for Regulation
Coinbase has been vocal in urging the SEC to shift away from its heavy-handed enforcement approach and instead focus on creating clear and workable regulations. The exchange has made multiple efforts, including rulemaking petitions and legal actions, to push the SEC towards establishing regulatory frameworks that provide certainty for the crypto industry.
In a closing statement on May 31, Coinbase emphasized that the SEC’s inconsistent stance has only added to the confusion in the market, rather than offering the anticipated regulatory clarity.
American Securities Association Advocates for Lower Budget
Separately, the American Securities Association (ASA), an independent trade association, has called for a reduction in the SEC’s budget. In a letter dated June 13, the ASA urged the Senate Appropriations Committee to provide the Enforcement Division with funding significantly below the President’s budget request.
Referencing the House Appropriations Committee’s recommendation to cap the SEC’s 2025 budget at $2 billion and allocate $644 million to the Enforcement Division, the ASA highlighted the need for fiscal responsibility and a focus on core SEC objectives.
Beyond budgetary concerns, the ASA emphasized the importance of holding the SEC accountable for its actions. The trade association called for stricter oversight, restrictions on information collection, operational investigations, and mandatory reporting to ensure the regulator upholds constitutional and legal standards.
While the ASA’s criticisms extend beyond the realm of crypto, the association also raised specific concerns about the SEC’s handling of cases involving crypto companies. Notably, the ASA requested a thorough review of an incident involving the crypto firm DEBT Box, urging Congress to address any lapses in the SEC’s oversight.
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