A security breach at the United States Securities and Exchange Commission (SEC) has led to the spread of false information about the approval of spot Bitcoin ETFs, sparking a thorough investigation by US Senators J.D. Vance and Thom Tillis. The senators have sent a detailed letter to SEC Chairman Gary Gensler, demanding clarity and explanations about the incident.
The letter, dated January 9, 2024, expresses concern about the SEC’s communication practices and the consequences of the false announcement, which caused market volatility and confusion among investors. The senators have questioned the SEC’s internal cybersecurity procedures and emphasized the importance of the SEC’s role in protecting investors, maintaining fair, orderly, and efficient markets, and facilitating capital formation.
The senators have asked for a comprehensive briefing, including a detailed explanation of the errant announcement, whether it was made by an SEC employee or an external entity, and whether the SEC has made an official decision regarding the approval of Bitcoin ETFs. They also want to know how the incident might affect the SEC’s timeline for a final decision on Bitcoin ETFs, the SEC’s plan to investigate the error, and strategies for rectifying any financial losses incurred by investors due to the misleading announcement.
The senators have set a strict deadline of January 23, 2024, for the SEC to respond to these queries. Ron Hammond, director of government relations at the Blockchain Association, has speculated that more US senators are likely to call for an explanation. Senators Cynthia Lummis and Bill Hagerty have also commented on the situation, emphasizing the need for transparency and accountability.
An internal investigation revealed a critical lapse in the SEC’s cybersecurity measures, stating that the compromise was due to an unidentified individual gaining control over a phone number associated with the SEC account through a third party. However, Bloomberg ETF expert Eric Balchunas speculated that the tweet may have been a planned tweet with the wrong date, suggesting it may have come from inside the SEC. At press time, Bitcoin traded at $45,744.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | negative |
| Relevance Score | 1 |
| People | Thom Tillis, Ron Hammond, J.D. Vance, Gary Gensler, Eric Balchunas |
| Companies | Shutterstock, Bloomberg, Blockchain Association, United States Securities and Exchange Commission, TradingView.com |
| Currencies | Bitcoin |
| Securities | None |
