Yahoo Finance Live anchors discuss Kim Kardashian’s settlement with the SEC after being charged over an Instagram crypto promotion.
BRAD SMITH: Slapping a bass. It's time for three stories, one minute each. It's "Cut For Time," everyone. We start with this, Kimmy from the block. Yeah, the Securities and Exchange Commission fined Kim Kardashian over $1 million for an Instagram story on IG promoting the crypto token, Ethereum Max, without disclosing her compensation. Since her post last June, that coin is now worth nothing at this point in time. Ethereum Max, that is.
They have put out a statement around it saying today we announced charges against Kim K for promoting a crypto security offered without disclosing that payment. And particularly this comes back to, it's also kind of-- it's reminiscent of what we had seen in 2017. Some of the ICOs that were taking place. A lot of different celebrities endorsing it. And then you fast forward to 2021, 2022, all of this celebrity partnerships with different exchanges or particular coins, and the SEC really wanting to crack down on that most recently.
BRIAN SOZZI: Yeah, good for-- a win for Gary Gensler. Good for him calling BS on stuff like this. But I think gives you insight into, yes, there's going to be more regulation in the crypto industry, and that seems to be one of the biggest concerns that have emerged over the past two weeks, and there should be.
JULIE HYMAN: If you see someone touting something on Instagram, assume they're being paid. Yes, she should be fined, but like, if you're as a consumer looking at that, assume the person's being paid. Come on.
BRIAN SOZZI: Good advice.