MicroStrategy's exec chairman told the crypto skeptic: "Bitcoin is a commodity, not a security. Advocating a commodity is similar to promoting steel, aluminum, concrete, glass, or granite."
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The fallout from Kim Kardashian's $1.26 million fine after promoting Ethereum Max on Instagram continues.
Following the SEC's announcement about the penalties — with the reality star now banned from endorsing digital assets on social media for three years — crypto skeptic Peter Schiff tweeted:
"What about the real pumpers? Saylor had much more to gain pumping crypto than Kim. Or CNBC paid millions for ads by crypto companies, then pumping Bitcoin non-stop while providing industry pumpers with airtime?"
His tweet attracted a swift rebuke from none other than Michael Saylor himself, who argued that Bitcoin can't be compared to an altcoin like Ethereum Max.
"Bitcoin is a commodity, not a security. Advocating a commodity is similar to promoting steel, aluminum, concrete, glass, or granite. The BTC network is an open protocol, offering utilitarian benefits similar to roads, rails, radio, telephone, television, internet, or English."
With the value of the crypto markets collapsing over recent months, "Bitcoin, not crypto" has become a common mantra — with BTC maximalists seeking to distance themselves from speculative altcoins that often have little utility.
Questions are also being raised about the settlement that Kim Kardashian reached with the SEC. Although the regulator has expressed hope that her case will set an example, and prompt other celebrities to think carefully about the products they endorse, some critics have likened this $1.26 million fine to a mere slap on the wrist.
One law firm managing partner, Andrew M. Lieb, has warned that settlement is unlikely to have much of an impact, and told Newsweek:
"Is being labeled a touter enough of a punishment for her, given that her estimated net worth of $1.8 billion makes this fine virtually meaningless to her in terms of serving as a penalty?"
Other lawyers see things differently. Anne Rose is the co-lead of the blockchain group at Mishcon de Reya — and said the SEC's charges "will be welcomed by many seeking to ensure appropriate consumer protection in the crypto space." She added:
"When it comes to cryptoassets specifically, brands should be careful not to 'promise the moon' to consumers. Among other requirements, they need to avoid implying that the product or service is regulated, that investments are safe or guaranteed, or that past performance is a guide for the future."
