The SEC charged the American influencer and celebrity with promoting a bitcoin asset security without disclosing to her followers the payments she received.
Gary Gensler, the chair of the Securities and Exchange Commission, has drawn criticism for his appearance on CNBC and video statement on Kim Kardashian’s penalties. The news made headlines and it is beloved that Gensler planned it that way.
The news that his agency fined Kim Kardashian $1.26 million for promoting a cryptocurrency on Instagram was eagerly reported by the media. Kim Kardashian agreed to resolve the claims and fork out $1.26 million in fines, disgorgement, and interest.
The SEC chair took the unusual step of announcing it on a Monday before markets opened and hyping the story with a video posted on Twitter, which is believed by many that he had set out to ride the wave of popularity of Kardashian’s celebrity status.
A Bitcoin ETF similar to those in operation in Canada and Europe was also rejected by Gensler’s agency, which would have prevented millions of dollars in fees for individual investors. Additionally, Gensler’s SEC has declined to clarify the crucial question of what qualifies as a security in cryptocurrency markets, which amounts to a dereliction of basic obligations.
He has also opted for a “regulation by enforcement” strategy that forces businesses to assume the SEC’s regulations instead of creating a legislative procedure to specify them. This deception has included the SEC declaring certain tokens to be securities through litigation settlements, which gives defendants no opportunity to object and permits the SEC to act without having to provide justification.
There are no known explanations for Gensler’s strange behavior, but many believe he is vying to succeed Janet Yellen as Treasury secretary.
There is nothing wrong with the SEC taking action against celebrity cryptocurrency promoters like Kim Kardashian, but Gary Gensler’s decision to put his personal personality and media stunts ahead of investors and the country is actively harming both.