(ThePatriotWire)- Kim Kardashian has been given a three-year prohibition from advertising cryptocurrencies by the Securities and Exchange Commission (SEC) and a $1 million punishment for allegedly promoting a cryptocurrency offering illegally.
The SEC is unhappy with Kardashian for reportedly accepting a $250,000 payment to promote EthereumMax’s EMAX token issuance without disclosing that she was being paid. Kardashian is required to repay the money she made plus the $1 million fine.
Gary Gensler, chairman of the SEC, said that Kardashian’s case also warns celebrities and others that the law compels them to disclose to the public when and how much they are paid to advocate investment in securities.
Kim Kardashian is the most recent celebrity to get an SEC fine for promoting cryptocurrencies. According to a report from the Associated Press, actor Steven Seagal agreed to pay more than $300,000 as part of a comparable deal with the SEC in 2020, which also prohibited him from marketing investments for three years.
For failing to report funds received for promoting digital currency, boxing champion Floyd Mayweather reached a similar settlement with the SEC in 2018.
More regulations on cryptocurrencies are being pushed for by the Treasury Department’s Financial Stability Oversight Council, which is a significant cause for Treasury Secretary Janet Yellen, who may leave her position after the 2022 midterm elections.
Jerome Powell, the head of the Federal Reserve, urged more regulation of cryptocurrencies last week. According to Powell, there is a clear need for more proper regulation to ensure that it is in place as Defi grows and begins to reach more retail customers.
The Fed Chair also talked of creating a digital currency run by the US government, which would need Congressional permission before it could be used. Powell acknowledged that the Central Bank Digital Currency (CBDC) of the United States will “not be anonymous.”