Coinbase has raised concerns over the Securities and Exchange Commission’s (SEC) proposed budget of $2.6 billion for the fiscal year 2025. The cryptocurrency exchange has criticized the allocation of funds towards enforcement, arguing that it should be used for creating clear regulations instead.
The SEC’s budget request includes a significant increase in funding for enforcement, with $812.4 million earmarked for this purpose. SEC Chair Gary Gensler has defended this allocation by stating that it will enable the regulator to investigate misconduct on a larger scale and handle more complex lawsuits.
In response to the SEC’s budget request, Coinbase has called for a reduction in enforcement activities and a focus on establishing workable regulations. The American Securities Association (ASA) has also expressed concerns about the proposed budget, urging the US government to allocate a lower amount to the SEC.
The ASA has recommended that the Senate Appropriations Committee limit the SEC’s budget to $2 billion for the fiscal year 2025, with a reduced budget for the Enforcement Division. The trade association has emphasized the importance of holding the SEC accountable for its actions and ensuring a focus on investor protection and market fairness.
While the ASA’s concerns are not solely centered around the crypto industry, it has called for an investigation into a mishandled SEC case involving a crypto firm. The trade association has highlighted the need for transparency and accountability within the securities regulator’s operations.
Overall, the debate over the SEC’s budget for 2025 reflects a broader discussion within the industry about the priorities and responsibilities of regulatory bodies. As stakeholders continue to advocate for a balance between enforcement and regulation, the outcome of this debate will have implications for the future of the crypto market and beyond.
