Final answer:
The SEC should go after celebrities promoting cryptocurrency to protect investors from fraud and scams, as their influence can lead to risky investments. Regulations and scrutiny can ensure transparency and accountability.
Step-by-step explanation:
The Securities and Exchange Commission (SEC) should go after celebrities promoting cryptocurrency because it helps protect investors from potential fraud, misinformation, and scams. Celebrities have a significant influence on their followers and their endorsement of a cryptocurrency can lead to a surge in investments, without proper regulation or oversight. This can put inexperienced investors at risk of losing their money.
For example, in 2017, the SEC charged boxer Floyd Mayweather and music producer DJ Khaled for promoting an initial coin offering (ICO) without disclosing that they were paid to do so. This case highlighted the importance of holding celebrities accountable for their actions when it comes to promoting investments.
By regulating and scrutinizing celebrity endorsements of cryptocurrency, the SEC can help ensure that investors are not misled and that the market remains fair and transparent. It also sends a strong message to both celebrities and potential fraudsters that promoting cryptocurrency without proper disclosures or misrepresentations is not acceptable.