According to the SEC’s enforcement team, Chairman Gary Gensler broke policy by utilizing media attention to boost his reputation for the Treasury Secretary post.
For those unaware, the billionaire celebrity was fined by the SEC earlier this week. The American Government Branch responsible for securities and exchange accused Kardashian of failing to disclose a payment she received for endorsing a cryptocurrency on her Instagram – which has over 330 million followers.
Kardashian’s legal team opted for avoiding bigger repercussions by settling the case with a hefty fine of US$1.26 million dollars paid to the SEC.
“Publicity Stunt” Claims
Critics accuse Gary Gensler – chairman of the SEC – of using Kardashian’s fame and notoriety as a “publicity stunt” in order to promote his leadership.
According to Fox Business Network’s Charles Gasparino, the SEC’s enforcement team is dissatisfied with Chairman Gary Gensler’s actions over Kim Kardashian’s recent settlement payment.
“SEC staffers are complaining [that] Gary Gensler violated protocol by hyping Kim Kardashian’s settlement,” Charles Gasparino wrote in a Tweet. “[Also] appearing on CNBC within minutes of the case being announced, people with direct knowledge tell Fox Business.”
“They are calling it a “publicity stunt”
The staff claims that Gensler willingly approached the American TV network CNBC to talk about the settlement of one of the biggest celebrities in the world. The move is seen as “unusual” for chairs, according to the SEC staffers.
Gensler On The Media
On October 3rd, Gensler released a video talking about the Kardashian case. The video showcased the chairman talking about the importance of regulating celebrity endorsement for financial assets.
“This case is a reminder that, when celebrities/influencers endorse investment apps, including crypto-asset securities, it doesn’t mean those investment products are right for all investors.” Gensler wrote on his Twitter.
What draws attention is the fact that the video has a “modern” style of editing and photography, making it seem like the video was targeted for a younger audience.
On the same day that video was released, Gensler made an appearance on CNBC to talk specifically about Kardashian’s embroilments with the SEC.
Gensler’s Next Objectives?
In an article for Fortune.com, the author Jeff John Roberts claims that Gensler’s ultimate goal with these alleged “self-promotions” are a future spot as America’s Treasury Secretary after Janet Yellen leaves the post in the near future.
After Gensler’s recent battles with cryptocurrency – and the dreaded “interest raise policies” have affected markets like crypto and stock – it’s tough to argue that the current SEC Chairperson did not gain a lot of notoriety, for better or worse.