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- Kim Kardashian has to pay a fine of $1.26 million
- Kardashian has neither admitted to nor denied the SEC’s allegations
- SEC targeted Kardashian because it creates the illusion the regulator is doing something – Sassano
After reality star Kim Kardashian was fined for promoting the cryptocurrency EthereumMax (EMAX), the crypto community responded with a mix of disbelief and amusement.
On October 3, Kardashian was fined $1.26 million by the Securities and Exchange Commission (SEC) of the United States for touting on social media about the EMAX without disclosing that she was paid $250,000 to post about it.
While Kardashian settled the charges and agreed not to promote any cryptocurrency assets until 2025, she neither admitted nor denied the allegations made by the SEC.
Bitcoin isn’t a security but a commodity – Saylor
Gary Gensler, chairman of the SEC, tweeted that the fine served as a reminder that investment opportunities endorsed by celebrities do not mean those investment products are right for all investors.
The online crypto community expressed their opinions regarding the fine following Gensler’s tweet, with some criticizing the SEC for its inconsistent enforcement decisions.
The SEC has not fined MicroStrategy co-founder Michael Saylor, who he believes has more to gain pumping crypto, according to economist Peter Schiff, who is known for his anti-Bitcoin (BTC) stance.
Saylor responded that Bitcoin is a commodity rather than a security, that promoting it would be similar to promoting steel or granite, and that the open protocol of the coin provides utilitarian beliefs similar to roads.
Layah Heilpern, a cryptophile and author, stated that the SEC has bigger issues closer to home it should probably focus on, likely implying the community’s widespread belief that certain U.S. politicians have inside traded.
Pseudonymous developer 0xBender noted a distinction between the SEC’s stringent approach to celebrity crypto promotions and the crypto-focused influencers who have been out here shilling you garbage for 0.2 ETH a tweet.
ALSO READ: Jack Dorsey’s Bitcoin Academy Airdrops $1000 in BTC
BTC Price at the time of writing – $20,000.67
Others, such as Renato Mariotti, a former federal prosecutor, stated that influencers considering endorsing cryptocurrencies should take note because the regulator is demonstrating that it will aggressively pursue enforcement actions and that those who promote crypto without taking the laws into consideration will need to find a good lawyer.
Meanwhile, Ethereum educator and investor Anthony Sassano suggested that the SEC should have targeted the EMAX creators rather than Kardashian because it gives the impression that the regulator is doing something about crypto scams.
However, there were those who saw the positive aspects of investing in a volatile and highly speculative cryptocurrency token. Journalist Tyler Conway stated that the celebrity got the full crypto experience by losing more money than she was paid.
Marcus Hutchins, who self-identifies as a hacker and creator of tech content, stated that Kardashian would have gotten better returns in EthereumMax because the platform has dropped 97% since her post, compared to the -80% that the promotion returned for her.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
