The SEC's Gensler said crypto exchanges that issue disclosures are not immune to the federal agency's enforcement actions.
U.S. Securities and Exchange Commission Chairman Gary Gensler said Wednesday that federal securities agents may continue bringing enforcement actions against crypto exchanges, even if the platforms disclose their products’ risks to retail investors.
In a CNBC interview, Gensler said crypto exchanges with disclosures aren’t immune to being sued by regulators if they are “manipulating the market.” The companies are also not protected from lawsuits if they publicize “misleading” information that leads traders to pour money into products they otherwise wouldn’t invest in, he said.
“Disclosure doesn't necessarily protect a bad actor,” Gensler said. “You can't just simply disclose that away.” Gensler also said Wednesday that most crypto companies still do not issue disclosures at all. He told CNBC interviewers that crypto exchanges have long operated in ways in which trading platforms in traditional financial markets would never be allowed to act.
The SEC has cracked down on the digital assets industry in recent years, particularly since the collapse of crypto exchange FTX. The agency has sued Kraken and Binance and is still pursuing a civil case against the U.S.'s largest crypto exchange by daily trading volumes, Coinbase.Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
SEC Chair Gary Gensler says investors lack needed crypto disclosures following multiple Wells NoticesSEC Chair Gary Gensler says investors are not getting vital crypto disclosures following multiple probes into the industry.
Read more »
SEC’s Gary Gensler is getting irked being asked about cryptoSEC Chair Gary Gensler thinks he’s asked too many questions about crypto compared to how small the market is.
Read more »
SEC Boss Gary Gensler Breaks Silence on Ethereum ETFsSEC Chairman Gary Gensler drops cryptic remarks on Ethereum ETF approval process, leaving investors on edge
Read more »
SEC Chair Gensler dodges Trump Media campaign finance questionsDJT shares have bounced up and down since it debuted on the Nasdaq in March.
Read more »
SEC Chair Gensler dodges Trump Media campaign finance questionsDJT shares have bounced up and down since it debuted on the Nasdaq in March.
Read more »
SEC's Gensler: Many Cryptocurrencies Are SecuritiesThe SEC's Gary Gensler has stressed that many cryptocurrencies are securities
Read more »