Gary Gensler Warns: Crypto Exchanges Face Crackdown for Market Manipulation
CryptoNewsTerminal Staff05 Jun, 2024
Gary Gensler Warns: Crypto Exchanges Face Crackdown for Market Manipulation
SEC Chair Vows Enforcement Against Misleading Disclosures In a stern warning to the cryptocurrency industry, U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler has emphasized that exchanges will not escape scrutiny and potential enforcement actions for market manipulation or misleading disclosures. "Crypto exchanges won't get away with market manipulation," Gensler stated in an interview with CNBC. "Enforcement actions will be taken by regulators if there's fraud or manipulation on these platforms, and they fail to have adequate controls." Gensler stressed that merely disclosing risks associated with crypto products would not absolve exchanges of responsibility. "Disclosures don't give a pass to exchanges to avoid having market manipulation," he said. The SEC Chair's remarks underscore the increasing regulatory scrutiny over the cryptocurrency market, as exchanges face growing pressure to comply with rules and regulations aimed at protecting investors.
