Fox Business Network’s Charles Gasparino said on Oct. 5 that the U.S. Securities and Exchange Commission’s (SEC) enforcement staff has accused Gary of his “publicity stunt” over Kim Kardashian’s recent settlement. He reported that he was dissatisfied with Chairman Gensler.
Scoop (1/3): @SEC_ Enforcement staff complaining @GaryGensler Protocol violation due to hype @Kim Kardashian payment, emergence @CNBC People with first-hand knowledge communicate within minutes of a case being announced @fox businessThey call it a “publicity stunt”
— Charles Gasparino (@CGasparino) October 5, 2022
Gasparino said regulatory staff complained that Gensler had violated the protocol by gaining media attention and building reputation for his position as Treasury Secretary.
A staff member was quoted as saying:
“Gensler sneaked up on CNBC to make a video about reconciliation… [an] An unusual movement of the chair that usually allows staff to take credit for action and pursue broader issues. “
Gensler’s media appearances
SEC Chairman Gary Gensler released a video on October 3, breaking news that the commission had fined Kim Kardashian for promoting Ethereum Max. In the video, Gensler says that just because a celebrity endorses an investment opportunity doesn’t mean that it’s suitable for all investors.
today @SECGovindicted Kim Kardashian for illegally promoting crypto security.
This case serves as a reminder that when celebrities/influencers endorse investment opportunities involving cryptocurrency securities, it does not mean that those investment products are suitable for all investors.
— Gary Gensler (@GaryGensler) October 3, 2022
The same day, the SEC chairman appeared on CNBC to discuss the enforcement case.
Prior to the recent lawsuit, the SEC chair allowed media interviews and referred to most cryptoassets as securities. He invited me to come and talk to him.
SEC Faces Backlash
The cryptocurrency community has lashed out at the SEC’s inconsistent enforcement of the industry.
Vocal Bitcoin pundit Peter Schiff has criticized the SEC for failing to fine MicroStrategy chairman Michael Thaler while it fined Kardashian. Thaler said in his defense that Bitcoin is not a security.
#bitcoin It’s a commodity, not a security. Advertising a product is like advertising steel, aluminum, concrete, glass, or granite. The BTC network is an open protocol and offers practical advantages similar to road, rail, radio, telephone, television, internet or English.
— Michael Saylor ⚡️ (@saylor) October 3, 2022
Another community member noted the commission’s failure to track down politicians like Nancy Pelosi who are facing insider trading allegations.
SEC tracks Kim Kardashian for crypto shillings, but Nancy Pelosi won’t make $100 million in insider trading https://t.co/i0bZKjaxjJ
— Dr. Parik Patel, BA, CFA, ACCA Esq. (@ParikPatelCFA) October 3, 2022
On the other hand, some wondered why Kardaishan was chosen among all the promoters of Ethereum Max. The Pump and Dump Project had other celebrity promoters such as Floyd Mayweather Jr. and Paul Pierce. The three are now facing a class action lawsuit lawsuit About token promotion.
