US Securities and Exchange Commission (SEC) Chairman Gary Gensler recalled enforcement action against cryptocurrency exchanges that violate the law. In his interview with CNBC, he discussed the regulation of trading platforms and the crypto market in general.
Even cryptocurrency exchanges that disclose risk information are not immune from agency enforcement actions, Gensler said. The SEC staff has every right to take enforcement action against such platforms if they “manipulate the market.”
Moreover, such companies are not immune from lawsuits if they publish “misleading” information that causes traders to invest money in the products, he said.
The SEC chairman also noted that most cryptocurrency companies do not disclose data at all, which poses additional threats to consumers.
