Several US senators are demanding an explanation from the US Securities and Exchange Commission (SEC) following 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, sending the crypto world into a temporary frenzy.
SEC Chairman Gary Gensler took to the social media platform 15 minutes later to explain that his agency’s profile had been hacked and that the false statement was removed 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 was not due to a breach of the social media giant’s systems. Instead, an unidentified individual allegedly gained control of a phone number linked to the SEC’s account.
X also noted that the regulator failed to set up two-factor authentication for his profile, despite Gensler publicly encouraged investors last year to secure their financial accounts with that feature.
Hi @GaryGensler this is a reminder to secure your financial accounts and protect yourself from identity theft and fraud.
Remember to:
?Use strong passphrases or passwords
?Set up multi-factor authentication
Keep account notifications enabled#CybersecurityAwarenessMonth pic.twitter.com/KBNOV3KhAJ— ZachXBT (@zachxbt) January 10, 2024
On Tuesday, Senators JD Vance (R-Ohio) and Thom Tillis (R-North Carolina) sent a public letter to Gensler demanding an explanation for the downside, which they noted led to Bitcoin price volatility and public confusion.
“These developments raise serious concerns about the Commission’s internal cybersecurity procedures and are inconsistent with the Commission’s tripartite mission to protect investors, maintain fair, orderly and efficient markets, and facilitate capital formation…
The United States is home to the deepest and most liquid capital markets in the world, and stability and soundness are imperative if investors are to maintain their confidence in our markets. It is unacceptable that the body charged with regulating the epicenter of the world’s capital markets would make such a colossal mistake.”
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