Ripple Calls for SEC Accountability After False Announcement
The US Securities and Exchange Commission (SEC) is facing scrutiny and demands for transparency following a false announcement made on its X account. The account falsely stated that all spot Bitcoin ETF applications had been approved, leading to concerns and calls for answers from Ripple executives.
Ripple Demands SEC Accountability
Ripple Chief Legal Officer Stuart Alderoty has called on the SEC to adhere to its rules and disclose the nature and impact of the incident within four days, as per its own regulations. Alderoty also emphasizes the need for the SEC to outline its processes for assessing and preventing cybersecurity threats.
Alderoty stated, “We’ll be waiting with bated breath.”
SEC Rules on Cybersecurity Disclosure
The demand for transparency is based on the SEC’s own rules introduced in July 2023. These rules require companies to disclose material cybersecurity incidents and describe their impact. SEC Chair Gary Gensler emphasized the importance of consistent cybersecurity disclosure for companies and investors.
The rules mandate that registrants report any material cybersecurity incident within four business days and describe their processes for managing cybersecurity risks.
Senators Condemn SEC’s Handling of Fake Bitcoin ETF Post
Ripple CEO Brad Garlinghouse expressed frustration with the situation, suggesting that the SEC should investigate itself for multiple matters. Senators J.D. Vance and Thom Tillis have also demanded an explanation from the SEC regarding the false announcement.
The senators deemed the SEC’s error unacceptable, particularly given its role as a regulator of capital markets.
Implications for the SEC’s Reputation
As the SEC faces mounting scrutiny, the cryptocurrency industry awaits the disclosure of details surrounding the incident and the regulatory body’s response. The outcome of these developments will impact the SEC’s reputation and the perception of regulatory oversight in the crypto space.
Source: SEC
Hot Take: Ripple Demands Answers from SEC Following False Announcement
The false announcement made by the SEC’s X account regarding spot Bitcoin ETF approvals has sparked demands for transparency and accountability from Ripple executives. Ripple’s Chief Legal Officer, Stuart Alderoty, has called on the SEC to disclose the nature and impact of the incident within four days, in accordance with its own rules. This incident raises concerns about cybersecurity threats and the SEC’s ability to prevent them. Additionally, Ripple CEO Brad Garlinghouse and Senators J.D. Vance and Thom Tillis have criticized the SEC’s handling of the situation. As the SEC faces mounting pressure, its reputation and the perception of regulatory oversight in the crypto industry hang in the balance.
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