Coinbase and ASA Challenge SEC’s $2.6 Billion Budget Proposal Both Seek Cuts

America's biggest crypto exchange, Coinbase, is challenging the SEC's budget request of $2.6 billion. Coinbase believes this is an excessive amount and is urging for a more reasonable budget.

Coinbase is not the only firm that has challenged the SEC's budget request. The American Securities Association has also spoken up, advocating for a lower budget allocation for the SEC.

Coinbase Challenges SEC's $2.6 Billion Budget Request

Coinbase took a stand against the U.S. Securities and Exchange Commission (SEC) over the budget request for the 2025 fiscal year. In a statement, the firm argued that the SEC keeps requesting more money, which it mainly used for enforcement purposes.

According to the exchange, the SEC hasn't dedicated substantial resources to developing clear regulations for the crypto industry. A closer look at the SEC's budget revealed that $812.4 million is designated for enforcement, a significant increase from the $675.6 million allocated in 2024.

Meanwhile, SEC Chair Gary Gensler defended the budget, explaining that this increase would allow them to hire more manpower.This would enable them to investigate potential misconduct within the crypto market on a larger scale and pursue more complex legal cases.

However, Coinbase believes there's a better way. It argues that the SEC's current approach, with its constant shifts and focus on enforcement, is doing more harm than good.

As a result, the firm has repeatedly urged the SEC to focus less on enforcement and more on creating transparent and workable regulations for cryptocurrency. It even petitioned the SEC to establish these rules and, when that failed, attempted to force a response through legal action.

Coinbass made this clear in a closing statement on May 31. As discussions continue, stakeholders await developments that could shape the future of crypto regulation in the United States.

ASA Supports The Crypto Exchange - Urges Lower SEC Budget Amidst Concerns Over Allocation

Apart from Coinbase, an independent trade group, the American Securities Association (ASA) has voiced concerns over the SEC's proposed budget.In a letter dated June 13, the ASA urged the U.S. government to allocate a lower budget to the SEC.

The ASA emphasized that the Senate Appropriations Committee should heed the advice of the House Appropriations Committee.They suggested limiting the SEC's budget for the 2025 fiscal year to $2 billion, with a specific allocation of $644 million for the SEC Enforcement Division.

Furthermore, the ASA called upon Congress to ensure that the SEC is responsible for its actions.

The group also emphasized the regulator's importance in protecting investors, maintaining fair markets, and fostering the formation of capital. It proposed several measures to ensure transparency and accountability.

Further, ASA requested restrictions on certain SEC data collection practices and advocated for investigations into the regulator's operations.Although its primary concern wasn't crypto, it highlighted a mishandled SEC case involving DEBT Box.

The trade association called for an investigation into this matter and urged Congress to hold the SEC accountable for its actions regarding the incident.

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