Jim Cramer, the prominent financial commentator and host of CNBC's 'Mad Money,' has voiced support for Keith Gill, known online as 'Roaring Kitty.' Gill, a key player in the GameStop short squeeze that shook financial markets in early 2021, recently disclosed a massive $180 million stake in GameStop [GME] stock. That includes five million shares and 120,000 short calls, refocusing attention on his trading activities.

Keith Gill's Massive Investment

Keith Gill's substantial investment has sparked discussions, particularly about the potential for regulatory scrutiny. The Securities and Exchange Commission [SEC] still needs to initiate a formal investigation into Gill's recent actions.

However, the mere possibility of such an inquiry is stirring significant speculation, underlining the potential risks for investors like Gill.

Gill's involvement in the historic GameStop short squeeze, in which retail investors on platforms like Reddit drove up GME stock prices, had already attracted regulatory attention.

His former employer, MassMutual, was fined $4 million for inadequate supervision of Gill's trades, though Gill insists his actions were not aimed at soliciting trades for personal profit.

Cramer's Perspective on Gill's Trades

Jim Cramer has weighed in, discussing the legality of Gill's recent trades. On his show, Cramer emphasized that there is nothing inherently illegal about buying calls and disclosing them.

However, he stressed the importance of avoiding unsubstantiated claims or attempts at market manipulation, which could attract SEC attention. Cramer further said,

"There's no wrongdoing in buying calls and being transparent about it. But it's crucial to be cautious about what you say and how you say it. The SEC is very sensitive to anything that even hints at market manipulation."

SEC's Increased Vigilance

Under its current administration, Jim Cramer's comments come as the SEC has shown increased vigilance in monitoring and regulating market activities to maintain financial market integrity.

The SEC can investigate and sanction individuals who violate securities laws, adding risk for traders like Gill.

Given Gill's high profile and past regulatory issues, further scrutiny is possible. While Gill maintains that his trading activities are lawful, the potential for regulatory intervention remains substantial.