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SEC Chair Violated Protocol Over Kim Kardashian Settlement

Legal

coingape.com 06 October 2022 11:57, UTC
  
Reading time: ~2 m

U.S Securities and Exchange Commission (SEC) recently charged fashion celebrity Kim Kardashian for promoting crypto asset security. However, it is now alleged that Gary Gensler, SEC chair violated protocols over the Kardashian’s settlement.

SEC chair breached conduct?

Charles Gasparino, a fox business journalist reported that the SEC Enforcement staff have accused the SEC chair of breaching conduct by hyping the recent $1.26 million. He mentioned that Gensler appeared on a news media channel just after announcing the case.

He mentioned that the staff is not happy with this and calls it a publicity stunt. This move was done to polish his reputation to be named as Treasury Secretary. It is alleged that the SEC chair sneakily went on to approach the news media to take the solo credit.

The report claims that the SEC chair created a video on the settlement without informing anyone. This is an unusual move from the chief as they usually allow the staff to take credit for such actions. While it motivates them to pursue broader issues ahead.

The Fox Business journalist highlighted that this is the latest battle between the SEC chair and the enforcement dep. Such moves result in losing attorneys. However, there are several complaints against Gensler’s management style and workload as the SEC is getting into nontraditional areas.

Watchdog leading new narrative?

Earlier, Coingape reported that Attorney John Deaton, Amicus Curiae in the XRP lawsuit tapped the SEC chair’s new approach towards digital assets.

He mentioned how the commission has labeled the term ‘crypto asset security’. Deaton believes that this is a part of controlling the narrative. As per XRP holders’ lawyer, the SEC is no longer calling it a ‘digital asset security’. The same words were used in the Ripple and LBRY cases.

However, as per the complaint, Kardashian failed to disclose the payment she received for promoting the token.


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