Fox Journalist Says SEC Fined Kim Kardashian to Give the Agency Equal Right With CFTC Over Crypto Regulation

Terret sheds more light on why the SEC chose to fine Kim Kardashian 

Eleanor Terrett, a Fox Business journalist, has shared an insight into why the Securities and Exchange Commission decided to slam a $1.2 million fine on American socialite Kim Kardashian. 

The Fox journalist noted that a former lawyer of the SEC informed her that the move was a plot to generate publicity. According to Terrett, the SEC used Kardashian as a scapegoat to give the general public the impression that the agency is focused on protecting investors from shady crypto investments. 

The ultimate goal of the move is to give the SEC bargaining power over the regulation of cryptocurrency. 

“[Gensler’s] goal, in part, is to prove that the SEC should have at least equal jurisdiction with the @CFTC on regulating crypto as Congress looks to determine who should be the principal regulator,” Terrett said. 

A former SEC lawyer tells me @KimKardashian was an easy target for @GaryGensler to generate publicity that the @SECGov is protecting investors from illicit #crypto schemes. His goal, in part, is to prove the SEC should have at least equal jurisdiction with the @CFTC on regulating

— Eleanor Terrett (@EleanorTerrett) October 4, 2022

Crypto Community Prefer CFTC Over SEC

There has been a major debate over who should oversee the regulation of the American crypto industry between the SEC and the Commodity Futures Trading Commission (CFTC). 

Many cryptocurrency stakeholders are backing the CFTC to become the appropriate regulator for the industry. Crypto enthusiasts believe the SEC is focused on protecting its turf at the expense of U.S. investors. 

The U.S. Congress is currently looking into the issue to determine the best agency to regulate the emerging market. The SEC has claimed that all cryptocurrencies except Bitcoin (BTC) fall under its regulatory purview. 

Terrett: SEC Used Kardashian to Make a Statement  

Recall that the prominent American businesswoman was paid up to $250,000 to promote EthereumMax tokens on her Instagram handle last year. However, the development landed her in trouble with the SEC, as the agency charged her to the tune of $1.2 million for promoting the shady cryptocurrency project and violating U.S. securities laws. 

The popular television personality agreed to pay the fine without refuting or conceding the claim. 

Based on this, Terrett said the SEC used the American socialite’s ambition of becoming a lawyer against her. With Kardashian accepting to comply with the SEC’s demand, “she is protecting her ability to be admitted to the CA bar which requires an applicant to have good moral character,” Terret added. 

admitted to the CA bar which requires an applicant to have "good moral character." The lawyer also says Kardashian may be used as a witness into an ongoing, possibly criminal investigation into #EthereumMax and its creators/promoters.

— Eleanor Terrett (@EleanorTerrett) October 4, 2022