The SEC Error
On January 9, 2024, the SEC’s official Twitter account announced that they had approved all spot Bitcoin ETF applications. This led to a brief surge in the BTC price.
SEC’s Clarification and Market Impact
SEC Chair Gary Gensler quickly clarified that the announcement was unauthorized and that no Bitcoin-related ETFs had been approved. This resulted in over $300 million in BTC liquidations.
Investigation into the Security Breach
The SEC’s account was compromised due to someone gaining control over a phone number associated with the account. The platform’s security team concluded that it was not due to any system failure but rather a third party issue.
Ripple Executives’ Reactions
Ripple CEO Brad Garlinghouse suggested that the SEC should investigate itself for multiple issues. Ripple’s Chief Legal Officer emphasized that the SEC should disclose the nature and scope of the incident and its market impact in line with its own rule.
Expectations for Launch of Spot Bitcoin ETFs in the U.S.
Despite the confusion, there is widespread anticipation that all U.S. spot Bitcoin ETFs will likely receive approval from the SEC later today, with trading expected to commence tomorrow.
Hot Take
The false announcement by the SEC’s official Twitter account led to a market surge that was short-lived, resulting in over $300 million in BTC liquidations. Ripple executives, including CEO Brad Garlinghouse and Chief Legal Officer Stuart Alderoty, criticized the SEC’s handling of the incident and emphasized the need for transparency and accountability. Despite this, there is still widespread anticipation for the approval of U.S. spot Bitcoin ETFs.
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