US Senators Demand Explanation From the SEC Over Fake Tweet Announcing Spot Bitcoin ETF Approval

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.

Remember to:
?Use strong passphrases or passwords
?Set up multifactor authentication
?Keep account alerts turned on#CybersecurityAwarenessMonth pic.twitter.com/KBNOV3KhAJ

— 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.”

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