In a recent development surrounding the GameStop saga, Jim Cramer, popular financial commentator, backed Keith Gill, famously known as Roaring Kitty, amid talks of a potential investigation by the SEC. The trader, who shot to fame during the GameStop short squeeze in 2021, recently disclosed a staggering $180 million position in GME stock, comprising five million shares and 120,000 short calls.
While the regulator has yet to raise any questions for Gill about the action, social media has begun to discuss how market manipulation litigation is possible, especially under the current SEC administration.
Cramer, speaking on the legality of Gill’s actions, emphasized that there is no wrongdoing in buying calls and disclosing them. However, he cautioned against making unsubstantiated claims or boosting, as it could attract SEC scrutiny. That is because the regulator has the authority to investigate and sanction individuals for potential market manipulation or violation of securities laws.
Nothing illegal if you buy calls and shows them
— Jim Cramer (@jimcramer) June 3, 2024
While the SEC has yet to formally address Gill’s actions, the specter of regulatory intervention looms large. This is particularly pertinent given Gill’s past run-ins with regulators. His previous employer, MassMutual, was fined $4 million for inadequate supervision of Gill’s trading activities.
Although Gill has maintained his innocence, insisting he did not solicit trades for personal gain, regulatory suspicion persists.
The SEC’s stance, under the current administration, remains a critical factor. With Gill’s actions potentially under the regulatory microscope, the ramifications could be significant.
