Gary Gensler: Disclosure Does Not Release Crypto Exchanges from Liability
Date: 2024-06-06 Author: Henry Casey Categories: BUSINESS
US Securities and Exchange Commission (SEC) Chairman Gary Gensler made an important announcement regarding enforcement action against cryptocurrency exchanges that violate the law. In an interview with CNBC, Gensler discussed current regulatory issues in the crypto market and the actions of trading platforms.
Enforcement Measures
Gary Gensler recalled that the SEC will take tough action against crypto exchanges that violate the law. According to him, even if platforms disclose information about risks, this does not relieve them of responsibility. The SEC has full enforcement powers in cases of market manipulation.
Gensler emphasized that companies that publish misleading information are also liable under the law. If such data causes traders to invest in products based on inaccurate information, cryptocurrency platforms could face legal action. "Disclosure of information in no way justifies the attacker's actions," Gensler said.
The Problem of Insufficient Disclosure
Another important topic was the problem of insufficient disclosure of information by most cryptocurrency companies. Gensler noted that the lack of data poses additional threats to consumers and undermines trust in the market.
Gary Gensler previously stated the need for a “disinfectant” for the crypto market. He also criticized the bill on the definition of crypto assets, which, in his opinion, does not provide the appropriate level of protection for investors and consumers.
SEC Chairman Gary Gensler's statements highlight the importance of strict regulation of cryptocurrency exchanges and the need for transparency in the crypto market. The SEC intends to continue to combat violations and protect the interests of consumers by taking enforcement action against companies that violate the law.
