The Securities and Exchange Commission (SEC) has landed in hot water after a tweet from its official account erroneously suggested that spot Bitcoin exchange-traded funds (ETFs) had been approved. This tweet caused significant volatility in the crypto market and drew the ire of crypto leaders, who expressed their frustrations on social media.
For example, Tyler Winklevoss, co-founder of Gemini, tweeted his disappointment with the SEC and speculated that the agency might receive a Wells Notice from its own enforcement division. Brad Garlinghouse, CEO of Ripple, took a sarcastic tone and suggested that the SEC should investigate itself. Michael Saylor, co-founder of MicroStrategy, highlighted the irony of the false tweet.
Crypto Leaders React to the Incident
Paul Grewal, Chief Legal Officer of Coinbase, also expressed frustration at the incident, alluding to Coinbase’s ongoing legal battle with the SEC. Coinbase is seeking clarity on how the agency’s rules apply to crypto, which is crucial as it provides custody services for multiple spot Bitcoin ETF applications.
Nate Geraci, president of The ETF Store, called this incident a twisted plot twist in the saga of trying to launch a spot Bitcoin ETF. Anthony Scaramucci doubted the idea that the account was hacked and suggested it might have been a premature release. Critics resurfaced old SEC crypto posts, emphasizing the agency’s responsibility for accurate information.
Concerns Raised by Senators and Closing Thoughts
Two United States senators raised concerns about the recent breach of the SEC’s Twitter account and called for an evaluation of the commission’s internal cybersecurity procedures. They emphasized that this breach contradicts the SEC’s mission of protecting investors and maintaining fair markets.
Hot Take: SEC’s Misleading Tweet Sparks Outrage in Crypto Community
The unauthorized tweet from the SEC’s official account, suggesting the approval of spot Bitcoin ETFs, has ignited a firestorm of criticism and frustration among crypto leaders. The incident not only caused significant market volatility but also raised questions about the SEC’s credibility and internal cybersecurity procedures. Traders, investors, and industry figures took to social media to express their disappointment and disbelief at the false tweet. As the crypto community continues to demand clarity and fair regulation, this incident serves as a reminder of the challenges faced by both regulators and market participants in navigating the rapidly evolving world of cryptocurrencies.
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