U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler stated on Wednesday that federal securities agents may persist in taking enforcement actions against cryptocurrency exchanges, even if these platforms disclose the risks of their products to retail investors.

In an interview with CNBC, Gensler emphasized that disclosures do not grant immunity from regulatory actions if crypto exchanges engage in market manipulation or disseminate misleading information that could entice traders into risky investments. He clarified, “Disclosure doesn't necessarily protect a bad actor. You can't just simply disclose that away.”

Gensler also highlighted that most crypto companies still fail to provide adequate disclosures. He criticized the operational practices of crypto exchanges, noting that they often deviate significantly from the standards upheld by traditional financial markets.

The SEC has intensified its scrutiny of the digital assets industry, especially following the collapse of the crypto exchange FTX. The agency has initiated lawsuits against major players such as Kraken and Binance and is currently pursuing a civil case against Coinbase, the largest U.S. crypto exchange by daily trading volume.

Gensler’s remarks underscore the SEC’s commitment to stringent oversight and enforcement in the crypto sector, signaling that disclosures alone will not suffice to shield companies from legal repercussions if they engage in fraudulent or manipulative practices.