Multiple US senators are demanding an explanation from the U.S. Securities and Exchange Commission (SEC) after Tuesday’s high-profile social media fiasco.
Someone compromised the SEC’s X account on Tuesday and issued a false statement claiming the regulator had approved spot Bitcoin (BTC) exchange-traded fund (ETF) applications, whipping the crypto world into a temporary frenzy.
SEC Chair Gary Gensler took to the social media platform 15 minutes later to explain that his agency’s profile had been hacked, and the false statement was deleted later that day. The SEC legitimately approved 11 spot Bitcoin ETFs on Wednesday.
X’s update page confirmed the SEC hack on Tuesday evening but claimed it wasn’t due to any breach of the social media giant’s systems. Rather, an unidentified individual reportedly secured control of a phone number associated with the SEC’s account.
X also noted that the regulator failed to set up two-factor authentication for its profile, despite the fact that Gensler publicly encouraged investors last year to secure their financial accounts with that very feature.
Hi @GaryGensler this is a reminder to secure your financial accounts as well as protect against identity theft and fraud.
— ZachXBT (@zachxbt) January 10, 2024
On Tuesday, Senators J.D. Vance (R-Ohio) and Thom Tillis (R-North Carolina) sent a public letter to Gensler demanding an explanation for the snafu, which they note led to Bitcoin price volatility and public confusion.
“These developments raise serious concerns regarding the Commission’s internal cybersecurity procedures and are antithetical to the Commission’s tripart mission to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation…
The United States is home to the world’s deepest and most liquid capital markets and stability and soundness are imperative if investors are to maintain their trust in our markets. It is unacceptable that the agency entrusted with regulating the epicenter of the world’s capital markets would make such a colossal error.”
Disclaimer: Opinions expressed at BitcoinLinux are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. BitcoinLinux does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is BitcoinLinux an investment advisor. Please note that BitcoinLinux participates in affiliate marketing.
Generated Image: Midjourney
The post US Senators Demand Explanation From the SEC Over Fake Tweet Announcing Spot Bitcoin ETF Approval appeared first on BitcoinLinux.