Coinbase raised objections to the SEC’s $2.6 billion budget request for the 2025 fiscal year. In a statement to CryptoSlate on June 13, a representative from Coinbase criticized the SEC for allocating funds primarily to enforcement rather than to creating clear crypto regulations through meaningful rulemaking. The SEC’s proposed budget includes $812.4 million earmarked for enforcement, an increase from $675.6 million in 2024.

SEC Chair Gary Gensler defended the budget, highlighting plans to expand the Division of Enforcement by adding 27 full-time equivalent positions, totaling 1,447 positions. This expansion aims to enhance the SEC’s capacity to investigate larger-scale misconduct and pursue more complex legal actions.

Coinbase has consistently urged the SEC to shift away from heavy-handed enforcement tactics and focus instead on developing practical regulatory frameworks. The exchange recently emphasized on May 31 that the SEC’s inconsistent stance has contributed to confusion and regulatory uncertainty rather than clarity.

Separately, the American Securities Association (ASA), in a letter dated June 13, urged Congress to reduce the SEC’s budgetary allocation. The ASA suggested aligning with the House Appropriations Committee’s recommendation to cap the SEC’s budget at $2 billion for the fiscal year 2025, with the Enforcement Division receiving $644 million. The ASA stressed the importance of holding the SEC accountable for prioritizing investor protection, market fairness, and capital formation.

While the ASA’s concerns extend beyond crypto, it also called for an investigation into a mishandled case involving the crypto firm DEBT Box. The association urged Congress to ensure transparency and accountability in the SEC’s operations, emphasizing the need for oversight to maintain constitutional and legal compliance.