US Senators Demand Answers from SEC After Fake Tweet Claims Approval of Bitcoin ETFs
Following Tuesday’s social media incident, several US senators are seeking clarification from the US Securities and Exchange Commission (SEC). The agency’s Twitter account was compromised, resulting in a false statement that the regulator had approved spot Bitcoin exchange-traded fund (ETF) applications. SEC Chair Gary Gensler promptly addressed the situation, explaining that the agency’s profile had been hacked and that the false statement was later removed. On Wednesday, the SEC officially approved 11 spot Bitcoin ETFs.
The SEC hack was confirmed by X, but it emphasized that it did not result from any breach of its own systems. Instead, an unidentified individual reportedly gained control of a phone number associated with the SEC’s account. X also pointed out that the regulator had failed to set up two-factor authentication for its profile, despite Gensler publicly encouraging investors to use this security measure last year.
Senators Demand Explanation for Twitter Hack
Senators J.D. Vance (R-Ohio) and Thom Tillis (R-North Carolina) have sent a public letter to SEC Chair Gary Gensler demanding an explanation for the incident. They expressed concerns about the agency’s internal cybersecurity procedures and highlighted how the false tweet led to Bitcoin price volatility and public confusion. The senators emphasized that trust in US capital markets is crucial and that it is unacceptable for the regulatory agency overseeing these markets to make such a significant error.
Hot Take: Cybersecurity Measures Are Crucial in the Crypto Industry
The recent hacking incident involving the SEC’s Twitter account highlights the importance of robust cybersecurity measures in the crypto industry. This incident caused temporary chaos in the market and raised concerns about investor trust. It serves as a reminder that individuals and organizations involved in cryptocurrencies must prioritize the security of their accounts. Implementing two-factor authentication and other strong security measures can help prevent unauthorized access and protect against potential hacks. As the crypto industry continues to grow, cybersecurity awareness and proactive measures become increasingly vital.
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