Is the regulator’s latest action a warning shot that stricter adherence to the rules is on the way?
- Listen to Bloomberg Crypto on the iHeartRadio App
- Listen to Bloomberg Crypto on Apple Podcasts
- Listen to Bloomberg Crypto on Spotify
(Bloomberg) — It seems that the Securities and Exchange Commission has finally found a way to keep up with the Kardashians.
The US markets regulator announced last week that Kim Kardashian had agreed to pay $1.26 million to settle allegations that she broke US rules by touting a crypto token.
The SEC said Kardashian did not disclose that she was paid $250,000 to post on her Instagram account about EMAX tokens, a crypto asset offered by EthereumMax.
That allegation meant she had, in SEC speak, illegally touted a crypto security.
The law requires anyone who touts a security, such as a stock or even some types of cryptocurrencies, to not only say they are getting paid to do so, but also to disclose the amount, the source, and the nature of those payments.
Kardashian settled without admitting or denying the SEC allegations.
And she agreed to refrain from touting any additional digital assets for three years.
What are the broader implications of the SEC’s action? What does it mean for other influencers and celebrities hawking digital assets like NFTs?
And is it a warning shot that stricter adherence to the rules is on the way?
Bloomberg crypto and regulation reporter Allyson Versprille and Bloomberg financial lifestyles and money culture reporter Misyrlena Egkolfopoulou join this episode.
Follow us on Twitter @crypto, and subscribe to the Bloomberg Crypto Newsletter at https://bloom.bg/cryptonewsletter
More stories like this are available on bloomberg.com
©2022 Bloomberg L.P.
