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SEC chair Gensler cautions crypto exchanges on enforcement

U.S Securities and Exchange Commission (SEC) Chairman Gary Gensler issued a warning to cryptocurrency exchanges, stating that providing disclosures to investors does not shield them from regulatory enforcement.

Gensler emphasized in a CNBC interview Wednesday that disclosures alone are inadequate if crypto exchanges engage in activities such as market manipulation or disseminate misleading information that affects investment decisions.

He also pointed out that many crypto companies fail to provide any disclosures, operating in a manner that would be unacceptable in conventional financial markets.

The SEC has ramped up its enforcement actions in the digital assets space, particularly after the collapse of cryptocurrency exchange FTX in late 2022.