SEC’s Misinformation Puts Bitcoin ETF at Risk
The SEC’s official X account announced the approval highly anticipated spot Bitcoin ETF, only to later claim a security breach.
Chairman Gary Gensler clarified the misinformation, attributing it to an unauthorized user’s actions. The tweet was promptly removed, but the repercussions linger.
SEC’s Cybersecurity Under Scrutiny
The incident has brought the SEC’s recently adopted cybersecurity rules into the spotlight.
The tweet from X’s handle named ‘Safety’ confirms that the account @SECGov was compromised, and a preliminary investigation has been completed which shows that the compromise was caused by an unidentified individual gaining control over a phone number associated with the SEC account through a third party.
Analyzing the Fallout
Senior ETF analyst at Bloomberg Intelligence, Eric Balchunas’ latest tweet captured attention with 4 crucial questions regarding the security breach.
“1. Who is the “individual” responsible for the compromise?
2. Who represents the “third party” involved in the incident?
3. Whose phone number did the individual acquire or steal to gain control?
4. Did the intruder compose the tweet themselves or discover it in the drafts folder?”
In another post, Charles Gasparino, FBN Senior correspondent, reported that despite the challenges and controversies at the SEC regarding the spot Bitcoin ETF, legal experts he consulted believe that rejecting the applications at this stage of the process would be unprecedented.
Gasparino anticipates that Wednesday could be a significant day for the mainstreaming of crypto, suggesting potential positive developments for the approval of spot Bitcoin ETFs.
Hot Take: Ripple’s Swift Response
Ripple’s Chief Legal Officer, Stuart Alderoty, responded swiftly corresponding in its tweet a deadline and reminding the SEC of its own rules.
Stuart Alderoty, Ripple CLO, in adherence to SEC rules, demanded accountability within four days. He underscored the urgency of understanding the breach’s scope and its implications for the market. This move reflects Ripple’s commitment to transparency and adherence to regulatory standards.
The confusion surrounding the fake ETF approval tweet has raised Ripple’s proactive stance and the demand for proper justification.
As the crypto space is currently in shock due to the aftermath, questions linger about the SEC’s ability to manage its communication effectively.
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