Final answer:
The SEC should go after celebrities promoting cryptocurrency to protect investors from potential scams. Celebrities may not fully understand the legal implications of their actions. Paul Pierce violated securities laws by promoting a cryptocurrency without proper disclosure.
Step-by-step explanation:
The SEC should go after celebrities promoting cryptocurrency because it is important to ensure that investors are protected from potential scams and fraudulent activities. Celebrities have a wide reach and their endorsements can significantly impact the market, leading to potential financial harm for investors. Celebrities may not fully appreciate the legal implications for their actions promoting cryptocurrency and may unknowingly engage in activities that violate securities laws.
One example of a celebrity violating securities laws is Paul Pierce. In 2021, he promoted a cryptocurrency project called 'Dad Token' on social media without disclosing that he was receiving compensation for the promotion. This violated the SEC's rules on promoting securities without proper disclosure, as well as anti-fraud provisions. Pierce eventually settled with the SEC and agreed to pay a fine to resolve the charges.