US Senators call on SEC for clarification after deceptive tweet about Bitcoin ETFs
U.S. Senators J.D. Vance and Thom Tillis have called on the Securities and Exchange Commission (SEC) to provide a comprehensive report to Congress about the breach of X account on January 9.
In a letter addressed to SEC Chair Gary Gensler, Vance and Tillis expressed serious concerns about the SEC’s cybersecurity measures, arguing that the breach contradicted the SEC’s mission of safeguarding investors, ensuring efficient markets, and facilitating capital formation.
The letter referred to the widely publicized breach that resulted in the dissemination of false information regarding the approval of Bitcoin exchange-traded funds (ETFs) in the United States.
The senators highlighted the confusion caused by the breach and underscored the importance of the SEC complying with the recently implemented rule mandating the disclosure of cybersecurity incidents within four days. They requested a report on the breach by January 23, seeking clarification on whether the SEC can meet its own disclosure requirements.
In a separate incident on January 9, the SEC’s X account posted a false tweet claiming the approval of spot Bitcoin ETFs in the US, causing a brief uproar in the cryptocurrency community. However, SEC Chair Gary Gensler later confirmed that the account had been compromised and the tweet was unauthorized.
The incident led to volatile market reactions, with Bitcoin’s price briefly surging to around $47,900 before dropping to approximately $46,100.
An internal investigation conducted by X revealed that the account did not have two-factor authentication, making it vulnerable to unauthorized access. The breach was attributed to an individual gaining control of a phone number linked to the SEC’s account without compromising the social media platform’s systems.
Senators Cynthia Lummis, Bill Hagerty, and Representative Ann Wagner have also expressed their concerns about the incident. Hagerty demanded full transparency, while Lummis emphasized the need for clear communication to prevent market manipulation.
It is widely anticipated that spot Bitcoin ETFs will be approved by the U.S. financial regulator in the near future, with trading expected to begin by January 11.
