Kim Kardashian: SEC says that it can keep up with the crypto enforcement

Kim Kardashian, who is looking to become known as a reputable businesswoman, should have known better. In 2021, the US TV personality became a lifestyle brand and applied for cryptocurrency on their Instagram page.

Kardashian - at that time more than 200 million - did not inform her follower that she received $ 250,000 for the position. On Monday, the influencer paid $ 1.26 million to pay fees that she had violated rules by not disclosing the payment she had received from EthereMax.

In view of the fact that they promised an obscure token, a typical Instagram followers could probably have concluded that they got something in exchange for the post. Simply adding something that had been added to the shame of a lawsuit by the Securities and Exchange Commission would have saved her just a few weeks after her private equity company was founded. As part of the deal with the supervisory authority, Kardashian did not admit or denied misconduct.

The SEC has aggressively expanded its supervision of the cryptocurrency markets. This is part of the defense of his role as the right policeman in the financial services area.

The influence of the SEC on cryptos is not a clarified question. Washington puzzled over which authority should be responsible. This is a critical question because the prices for cryptocurrencies have largely broken down since Kardashian's post.

Based on a judgment of the Supreme Court from 1946, the SEC uses the so-called Howey test to determine whether an asset is to be qualified as an investment contract or security and is therefore subject to the Federal Working Act. The test is whether an asset contains an investment of money in a joint company, with the expectation that the efforts of other profits will be achieved.

In its arrangement, the SEC argues that the marketing materials and public statements from EthereMax provide clear evidence that the Howey test has been met.

Some cryptocurrency sponsors, especially Ripple Labs, challenge the authority of the SEC. Some in the congress would prefer if the Commodity Futures Trading Commission would take the lead. But the success of the SEC when winning great comparisons of people like Kardashian improves their chances of gaining dominance.