All results
What do T.I. and Kim Kardashian have in common? They both have run afoul of SEC disclosures. Kardashian has to pay the Securities and Exchange Commission (SEC) a total of $1.26 million for her failure to disclose a payout for promoting a cryptocurrency. According to the SEC’s official website, Kardashian received $250,000 from EMAX tokens, a cryptocurrency offered by EthereumMax. While SEC disclosures don’t forbid “influencers” to receive compensation for promoting crypto-coins, they do require that said influencers disclose when they receive payment for said promotion, which Kardashian didn’t do. As a result, she has agreed to pay a fine. “The federal securities laws are clear that any celebrity or other individual who promotes a crypto asset security must disclose the nature, source, and amount of compensation they received in exchange for the promotion,” said Gurbir S. Grewal, Director of the SEC’s Division of Enforcement, in the official release. “Investors are entitled to know...
Airbnb wants to give its hosts shares of its company, but it won’t be easy. On Friday, Airbnb sent a letter to the Securities and Exchange Commission (SEC) requesting changes to SEC Rule 701 that would allow a new class of shareholders for workers in the gig economy. Airbnb hosts are considered contractors, much like Uber drivers or Instacart shoppers, which do not have the same benefits as full-time employees or investors. “We believe that enabling private companies to grant hosts and other sharing economy participants equity in the company from an earlier stage would further align incentives between such companies and their sharing economy participants to the benefit of both,” Airbnb said in its letter. Airbnb’s request comes months after the company announced its plans to go public by June 2019. Airbnb risks running into other hurdles even if the SEC agrees to change its regulations. The current SEC rules state private companies with more than 2,000 shareholders or 500 or more...