House Republicans have proposed reducing the U.S. Securities and Exchange Commission's (SEC) budget for 2026 by 7 per cent, cutting around 153.9 million dollars to bring total funding to just over 2.03 billion dollars. Cointelegraph reports that this is a part of a 23.3 billion dollar appropriations bill that cleared a House subcommittee on party lines.
The strategy also seeks to prevent the SEC from spending its budget enforcing a rule made in mid-2023. The rule mandates public firms, including foreign companies listed in America, to report significant cyberattacks within four days unless they threaten public or national security. It also calls for yearly cybersecurity reporting. Republicans think these measures will eliminate unnecessary regulatory expenditures associated with the current administration.
Democrats have been opposing the move, which they say could make investor protections weaker. Representative Rosa DeLauro denounced the cuts, stating that they would allow corporations to take advantage of consumers and get away with malfeasance. Financial and banking lobbying groups have also opposed the cyber-disclosure rule, saying it may inadvertently assist cybercriminals.
Cointelegraph points out that the SEC enforcement of the rule has already begun affecting companies. For instance, Coinbase disclosed that contractors were bribed to expose user information, and this led to lawsuits. The proposal is an indication of a larger Republican attempt to roll back regulatory control and cybersecurity mandates.
UK Seizes Illegal Crypto ATMs in Ongoing Crackdown
The UK Financial Conduct Authority (FCA) has stepped up its efforts against unlawful crypto ATMs, confiscating seven machines and detaining two individuals who are suspected of running unregistered cryptoasset exchange services. According to Cointelegraph, none of the currently operating crypto ATMs in the UK are FCA-registered, which would make all of them unlawful.
The move follows previous raids where 26 unregistered crypto ATMs were closed nationwide. The FCA, in collaboration with regional crime units and local police, has been concentrating its efforts in locations like southwest London, Exeter, Nottingham and Sheffield in order to detect and take out illegal machines. Cointelegraph adds that the move is part of a wider initiative to ensure compliance and safeguard customers.
The FCA has advised the public to be cautious when using illegal crypto ATMs since these services do not subject clients to anti-money laundering checks and have been associated with criminal activities. Officials added that any unregistered operators will be dealt with severely, including being arrested and having their property confiscated.
As Cointelegraph reports, the regulator seeks to cut off channels for illicit money transfer and make sure that services related to cryptocurrencies adhere to the same standards as usual financial institutions. The offensive reflects the UK's strict approach to the unregulated use of cryptocurrencies, prioritising the protection of consumers and the restriction of abuse of digital currencies for illegal activities.
CoinDCX Launches Bounty After $44 Million Hack
CoinDCX, India's biggest cryptocurrency exchange, fell prey to a $44 million hack in its internal liquidity accounts, but user assets were safe. Cointelegraph reports that the firm has launched a white-hat recovery bounty, promising a maximum of 25 per cent of the recovered assets to ethical hackers assisting the return of the stolen funds. CEO Sumit Gupta confirmed that the company's treasury covered the losses and ensured that security measures are being beefed up to avoid similar attacks in the future.
The hack underlines increased vulnerabilities of centralised exchanges. More than 65 per cent of Web3 losses in the second quarter of 2024 have been attributed to attacks on these exchanges, which total nearly $500 million, according to a report by Cointelegraph. Michael Pearl, a vice president of blockchain security company Cyvers, noted that poor access controls and lack of real-time monitoring are leaving these platforms open to attacks.
The CoinDCX hack is a follow-up to high-profile hacks such as the $230 million hack of WazirX in July 2024 and Bybit's $1.4 billion hack in early 2024, the biggest in crypto history. Cointelegraph reports that CoinDCX is prioritising the tracking down of the hackers and has called on other exchanges to use off-chain transaction verification and wallet surveillance to cut risks.
