Increased Number of US Senators Seek Clarification from the SEC Following Social Media Hack Linked to Bitcoin ETF

US Senators Call for Investigation into SEC Hack

Following the recent hack on the US Securities and Exchange Commission’s (SEC) social media account, more US senators are demanding answers from the regulatory body. Senators Ron Wyden and Cynthia Lummis have written to the inspector general of the SEC, calling for an investigation into the hack. They criticized the SEC’s failure to follow cybersecurity best practices and highlighted the potential impact of a hack on investor trust and market stability.

The SEC Hack and False Bitcoin ETF Approval

On Tuesday, an individual compromised the SEC’s social media account and issued a false statement claiming that Bitcoin exchange-traded funds (ETFs) had been approved. The statement was later deleted by SEC Chair Gary Gensler, who confirmed that the agency’s profile had been hacked. The SEC legitimately approved 11 spot Bitcoin ETFs the following day.

Lack of Cybersecurity Measures at the SEC

The hack revealed that the SEC failed to set up multi-factor authentication (MFA) for its social media account, despite Gensler publicly encouraging investors to use MFA for their financial accounts. Senators Wyden and Lummis specifically called out this lack of MFA in their letter to the inspector general, urging an investigation into the agency’s practices related to MFA.

Senators Demand Explanation from SEC

Senators J.D. Vance and Thom Tillis had previously sent a public letter to Gensler demanding an explanation for the hack. They pointed out that it led to Bitcoin price volatility and public confusion.

Hot Take: Urgent Need for Improved Cybersecurity Measures at Regulatory Bodies

The recent hack on the SEC’s social media account has raised concerns about cybersecurity measures within regulatory bodies. US senators are demanding investigations and explanations, highlighting the potential impact of such hacks on market stability and investor trust. This incident emphasizes the urgent need for regulatory bodies to implement robust cybersecurity practices, including multi-factor authentication, to protect sensitive information and maintain public confidence in financial markets.