- A bevy of celebrity-backed meme coins has captured the crypto zeitgeist recently, but experts say they may be courting bigger legal risks compared to past enforcement actions.
- The U.S. Securities and Exchange Commission (SEC) has targeted celebrities for promoting cryptocurrencies on social media before—a list that notably includes Kim Kardashian, the celebrity entrepreneur and step-daughter to Caitlyn Jenner. And Jenner this week launched meme coins on Solana and Ethereum bearing the Olympic gold medalist’s name.
- To the extent that Jenner’s meme coins are unregistered securities, she could face greater legal consequences compared to Kardashian, attorneys specializing in securities laws told CoinOtag. In essence, Jenner could be viewed as both an issuer and a promoter—not just a paid shill.
Celebrity-backed meme coins are under scrutiny as legal risks mount. Discover the latest developments and expert insights in the world of crypto endorsements.
SEC’s Crackdown on Celebrity Crypto Endorsements
The SEC has a history of targeting celebrities for promoting cryptocurrencies on social media. Kim Kardashian, for instance, faced charges in 2022 for promoting Ethereum Max, which regulators claimed violated federal securities laws. The main issue was her failure to disclose the $250,000 she received for the promotion. Without admitting to or denying the charges, Kardashian settled by paying $1.26 million.
Jenner’s Meme Coins: A New Legal Frontier
Unlike Kardashian, Caitlyn Jenner’s involvement in meme coins could be more legally complex. Jenner’s role as both an issuer and promoter of her meme coins on Solana and Ethereum could expose her to greater legal risks. According to securities law experts, Jenner could face accusations of soliciting unregistered securities, which is a more severe violation.
Market Impact and Public Perception
Despite Jenner’s optimistic public statements about her meme coins, the market has reacted negatively. The value of her Solana-based meme coin plummeted 60% shortly after the launch of its Ethereum counterpart. This volatility raises questions about the long-term viability of celebrity-backed cryptocurrencies and their impact on market behavior.
Conclusion
The involvement of celebrities in the crypto market continues to attract regulatory scrutiny. While the allure of celebrity endorsements can drive initial interest, the legal risks and market volatility pose significant challenges. As the SEC intensifies its focus on high-profile cases, celebrities promoting cryptocurrencies may find themselves under increasing legal and public scrutiny.
