House Republicans Propose SEC Budget Cuts Impacting Cyberattack Disclosure Rule Affecting Coinbase

• House Republicans have unveiled a proposal to reduce the SEC’s 2026 budget by 7%, targeting enforcement funding for a Biden-era cybersecurity disclosure rule affecting public companies.

• The proposed cuts aim to restrict the SEC’s ability to enforce timely cyberattack disclosures, reflecting GOP efforts to roll back regulatory measures introduced under the current administration.

• According to COINOTAG sources, the move has sparked bipartisan debate, with Democrats warning it could undermine investor protections and corporate accountability in the evolving crypto landscape.

House GOP proposes 7% SEC budget cut, targeting enforcement of cyberattack disclosure rules amid pushback from Democrats and industry stakeholders.

‘,
‘

🚀 Advanced Trading Tools Await You!
Maximize your potential. Join now and start trading!

‘,
‘

📈 Professional Trading Platform
Leverage advanced tools and a wide range of coins to boost your investments. Sign up now!

‘
];

var adplace = document.getElementById(“ads-bitget”);
if (adplace) {
var sessperindex = parseInt(sessionStorage.getItem(“adsindexBitget”));
var adsindex = isNaN(sessperindex) ? Math.floor(Math.random() * adscodesBitget.length) : sessperindex;
adplace.innerHTML = adscodesBitget[adsindex];
sessperindex = adsindex === adscodesBitget.length – 1 ? 0 : adsindex + 1;
sessionStorage.setItem(“adsindexBitget”, sessperindex);
}
})();

SEC Faces 7% Budget Reduction and Enforcement Restrictions Under GOP Proposal

The House Appropriations subcommittee has advanced a funding plan that would allocate just over $2.03 billion to the SEC for fiscal year 2026, marking a 7% decrease from the previous year’s budget. This reduction includes specific prohibitions on using funds to enforce the cybersecurity incident disclosure rule enacted in mid-2023, which mandates public companies and foreign private issuers to report cyberattacks within four days unless national security concerns apply.

This rule also requires annual disclosures of cyber risk management strategies, a measure designed to enhance transparency and investor confidence in an era of increasing digital threats. The GOP’s budget proposal contrasts with the SEC’s recent request for $2.149 billion to support its expanding regulatory responsibilities, including overseeing the rapidly evolving crypto market.

‘,
‘

🔒 Secure and Fast Transactions
Diversify your investments with a wide range of coins. Join now!

‘,
‘

💎 The Easiest Way to Invest in Crypto
Dont wait to get started. Click now and discover the advantages!

‘
];

var adplace = document.getElementById(“ads-binance”);
if (adplace) {
var sessperindex = parseInt(sessionStorage.getItem(“adsindexBinance”));
var adsindex = isNaN(sessperindex) ? Math.floor(Math.random() * adscodesBinance.length) : sessperindex;
adplace.innerHTML = adscodesBinance[adsindex];
sessperindex = adsindex === adscodesBinance.length – 1 ? 0 : adsindex + 1;
sessionStorage.setItem(“adsindexBinance”, sessperindex);
}
})();

Banking Groups and Crypto Firms Criticize Cybersecurity Disclosure Rule

Several banking advocacy groups have publicly urged the SEC to repeal the cybersecurity disclosure requirement, arguing it inadvertently facilitates ransomware extortion by making attack information publicly accessible. This concern resonates with crypto firms like Coinbase, which disclosed in May that bribed contractors leaked user data, triggering multiple lawsuits and a rejected $20 million ransom demand. Coinbase estimates potential damages could reach up to $400 million, highlighting the complex interplay between regulatory compliance and cybersecurity risks in the crypto sector.

Democratic Opposition Highlights Risks of Reduced SEC Funding

Democrats on the House Appropriations Committee have strongly criticized the GOP’s budget plan, describing it as detrimental to consumer protection and corporate accountability. The proposal also restricts the SEC from collecting personally identifiable information through its longstanding equity and options trading surveillance system and limits rulemaking on private securities offerings.

‘,
‘

🔥 The Power of the TRON Ecosystem is Yours!
Click now to discover exclusive opportunities!

‘,
‘

💎 Profit Opportunities on the TRON Network
Join now to strengthen your investments!

‘
];

var adplace = document.getElementById(“ads-htx”);
if (adplace) {
var sessperindex = parseInt(sessionStorage.getItem(“adsindexHtx”));
var adsindex = isNaN(sessperindex) ? Math.floor(Math.random() * adscodesHtx.length) : sessperindex;
adplace.innerHTML = adscodesHtx[adsindex];
sessperindex = adsindex === adscodesHtx.length – 1 ? 0 : adsindex + 1;
sessionStorage.setItem(“adsindexHtx”, sessperindex);
}
})();