According to U.Today, Jim Cramer, a renowned financial commentator, has recently expressed his support for Keith Gill, also known as Roaring Kitty, in the midst of potential investigation talks by the Securities and Exchange Commission (SEC). Gill, who gained popularity during the GameStop short squeeze in 2021, has recently revealed a massive $180 million position in GME stock, which includes five million shares and 120,000 short calls.
Despite the SEC not yet questioning Gill about his actions, discussions about possible market manipulation litigation have started on social media, particularly under the current SEC administration. Cramer, commenting on the legality of Gill's actions, stressed that there is no wrongdoing in purchasing calls and disclosing them. However, he warned against making unverified claims or boosting, as it could draw the attention of the SEC. This is because the regulator has the power to investigate and penalize individuals for potential market manipulation or violation of securities laws.
While the SEC has not yet formally addressed Gill's actions, the threat of regulatory intervention is significant. This is especially relevant considering Gill's previous encounters with regulators. His former employer, MassMutual, was fined $4 million for insufficient supervision of Gill's trading activities. Although Gill has consistently claimed his innocence, insisting he did not encourage trades for personal profit, regulatory suspicion continues. The SEC's position, under the current administration, remains a crucial factor. With Gill's actions potentially under the regulatory microscope, the implications could be substantial.
