Coinbase objected to the SEC’s $2.6 billion budget request for fiscal year 2025.
In a statement to CryptoSlate on June 13, a Coinbase representative said:
“Once again, the SEC is asking for more money to go toward regulation through enforcement, while it has used none of its massive budget for real crypto regulation that would actually promote regulatory clarity.”
The SEC’s multi-billion dollar budget request allocates $812.4 million for enforcement, down from $675.6 million in 2024.
SEC Chairman Gary Gensler said the budget would increase the SEC’s Division of Enforcement by 27 full-time equivalent (FTE) positions to 1,447. The expansion will allow the regulator to “investigate misconduct on a larger scale” and bring more complex lawsuits.
Coinbase has repeatedly urged the SEC to tone down its enforcement approach and create workable regulations, including through rulemaking petitions and efforts to compel a response in court.
The exchange issued its closing statement on the matter on May 31, saying the SEC’s changing position has “created uncertainty and confusion” rather than regulatory clarity.
ASA calls for a lower budget
The American Securities Association (ASA), an independent trade association, separately urged the U.S. government to provide the SEC with a smaller budget.
The company wrote in a letter dated June 13:
“The Senate Appropriations Committee must…ensure the [SEC] Division of Enforcement at a funding level significantly lower than the President’s budget request.”
The ASA said the Senate committee should follow the House Appropriations Committee. The latter committee proposed limiting the SEC’s fiscal year 2025 budget to $2 billion and setting the SEC Enforcement Division’s budget at $644 million.
In addition, the ASA urged Congress to hold the SEC accountable and force it to focus on investor protection, market order and fairness, and capital formation.
The trade association asked for a ban on the collection of certain SEC information, demanded investigations into the regulator’s activities and requested mandatory reports. The ASA said:
“This SEC has acted as if the limitations of the Constitution and federal law do not apply to it.”
The ASA’s concerns are not primarily focused on crypto. However, the trade body called for an investigation into a mishandled SEC case involving crypto firm DEBT Box and urged Congress to hold the securities regulator accountable for the incident.