SEC staff reportedly unhappy with Gensler over Kim Kardashian ‘publicity stunt’


The U.S. SEC’s enforcement staff are reportedly unhappy with Chairman Gary Gensler over his “publicity stunt” concerning the recent settlement fine paid by Kim Kardashian, Fox Business Network’s Charles Gasparino reported on Oct. 5.

According to Gasparino, the regulator’s staff complained that Gensler violated protocol by using media attention to prop his reputation for the Treasury Secretary position.

The staff allegedly said:

“Gensler stealthily approached CNBC for his appearance and created a video on the settlement… [an] unusual move for chairs which usually allow staff to take credit for actions and pursue broader issues.”

Gensler’s media appearance

SEC chairman Gary Gensler released a video on Oct. 3 when news emerged that the commission had fined Kim Kardashian over her promotion of Ethereum Max. In the video, Gensler said celebrity endorsements of investment opportunities do not mean “those investment products are right for all investors.”

The SEC chair further appeared on CNBC the same day to discuss the enforcement case.

Before the recent case, the SEC chair had granted media interviews where he called most crypto assets securities. Additionally, Gensler had previously released social media videos where he urged crypto firms to come in and talk to the commission.

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SEC faces backlash

The crypto community has lashed the SEC’s inconsistent enforcement against the industry.

Vocal Bitcoin critic Peter Schiff criticized the SEC for failing to fine MicroStrategy Chairman Michael Saylor while fining Kardashian. Saylor, in his defense, stated that Bitcoin is not a security.

Another community member pointed out that the commission had failed to go after politicians like Nancy Pelosi, who is faced with allegations of insider trading.

Meanwhile, some wondered why Kardaishan was singled out among all of Ethereum Max’s promoters. The pump and dump project had other celebrity promoters like Floyd Mayweather, Jr., and Paul Pierce. The three are currently facing a class action lawsuit over their promotion of the token.

Posted In: U.S., Regulation



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