Coinbase recently expressed opposition to the $2.6 billion budget proposed by the U.S. Securities and Exchange Commission (SEC) for fiscal year 2025.
In a statement to the media on June 13, Coinbase representatives noted: “The SEC has again requested additional funding to strengthen enforcement, but its massive budget has not been used for real cryptocurrency rulemaking, and clear rulemaking would have increased regulatory clarity.”
The SEC's budget request plans to spend $812.4 million on law enforcement, an increase from $675.6 million in 2024. SEC Chairman Gary Gensler said the budget would increase the number of full-time positions in the enforcement division by 27 to 1,447, thereby strengthening the agency's ability to investigate misconduct and bring complex lawsuits.
Coinbase has repeatedly called on the SEC to reduce its enforcement efforts and instead formulate clear regulations, and has sought responses through rule-making petitions and legal channels. On May 31, the exchange issued a statement criticizing the SEC's changing positions for bringing uncertainty and confusion to the market rather than clear regulatory guidance.
ASA calls for SEC budget cuts
The American Securities Association (ASA) also opposed the SEC's budget request, suggesting in a June 13 letter that the Senate Appropriations Committee should provide the SEC's enforcement division with less funding than the president's budget request.
ASA believes that the Senate Appropriations Committee should follow the House Appropriations Committee's recommendation to limit the SEC's budget to $2 billion for fiscal year 2025, with the enforcement division budget set at $644 million. ASA also urged Congress to hold the SEC accountable and require it to focus on investor protection, market order and fairness, and capital formation.
The ASA seeks a ban on the SEC’s collection of certain information, an investigation into the regulator’s operations, and mandatory reporting. “The SEC’s actions appear to ignore the constraints of the Constitution and federal law,” the ASA said.
While the ASA’s concerns extend beyond the cryptocurrency space, the trade association has called for an investigation into the SEC’s mishandling of cases involving cryptocurrency companies and urged Congress to hold regulators accountable. #Coinbase #ASA #SEC #监管预算
Conclusion:
The joint opposition from Coinbase and the ASA reflects widespread concerns about the SEC’s budget and regulatory approach. Both agencies believe the SEC should rely less on enforcement and instead develop clear regulations to promote healthy market development and investor protection.
As the cryptocurrency market continues to mature, the roles and approaches of regulators should also adapt to ensure effective regulation while maintaining the market's potential for innovation and growth.
