Republican Lawmakers Urge SEC Chairman to Address Hack
A group of Republican lawmakers from the US House Financial Services Committee has called on Securities and Exchange Commission (SEC) Chairman Gary Gensler to respond to inquiries regarding the hack of the agency’s X account on January 9, 2024.
The committee has sent a letter to the SEC demanding a comprehensive briefing by January 17, 2024, according to a press release on January 10.
The hack involved a false tweet posted on the SEC X account claiming the approval and listing of Bitcoin ETFs on all registered national securities exchanges.
The misleading tweet gained widespread attention until Chairman Gensler clarified that the account had been compromised.
Bitcoin Price Surges Amidst Misinformation
Within the 15-minute gap between the viral post and Gensler’s clarification, the price of Bitcoin surged to nearly $48,000, highlighting the potential impact of misinformation on the cryptocurrency market.
Gensler Faces Criticism Over Viral Post
Chairman Gensler has faced backlash following the incident. Bill Hagerty, a member of the Senate Banking Committee, deemed the compromise “unacceptable” and demanded accountability.
The X safety team attributed the compromise to an individual gaining control over a phone number associated with the agency’s account through a third party. The team also confirmed that two-factor authentication was not enabled at the time of compromise.
Crypto enthusiasts and investigators have expressed concerns about the SEC’s ability to secure investors’ funds if they cannot protect their social media accounts.
Hot Take: US Congressional Committee Demands SEC Briefing on Misleading Bitcoin ETF Information on X
A group of Republican lawmakers has called on SEC Chairman Gary Gensler to address the hack of the agency’s X account. The misleading tweet claiming the approval and listing of Bitcoin ETFs caused a surge in Bitcoin’s price. Gensler has faced criticism for the compromise, and there are concerns about the SEC’s ability to secure investors’ funds. The committee has demanded a comprehensive briefing from the SEC. It is crucial for the SEC to fulfill its mission of investor protection and effective communication with market participants.
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