Lawmakers Call for Investigation into SEC Following Alleged Security Breach and False Bitcoin ETF Approval
Summary:
Prominent US lawyers and senators are urging Congress to investigate the SEC following a reported security breach of their X account, which incorrectly reported the approval of spot Bitcoin ETFs. The breach, labelled as potential market manipulation, reportedly incurred wide-reaching engagement. These developments come amidst ongoing anticipation for the official approval of spot Bitcoin ETFs.
Prominent attorneys and US senators are urging Congress to enact an inquiry into the Securities and Exchange Commission (SEC) after a purported security breach of their X account, which wrongly reported the approval of spot Bitcoin exchange-traded funds. "Congress must demand explanations similar to how the SEC would from a public firm that made such a gigantic error causing major market shifts," stated U.S. Senator Bill Hagerty via an X post on January 9th. Charles Gasparino from Fox Business reported that legal experts specializing in securities told him the SEC might be forced to self-examine for market tampering.
James Seyffart, a Bloomberg ETF analyst, inferred that Gary Gensler, the Chair of the SEC, would be enraged with whoever was behind the security infringement. On the other end of the spectrum, Timothy Peterson from Cane Island Alternative Advisors labeled the security breach as potentially manipulating the market - the exact event the SEC pledges to safeguard investors from. “The SEC's inability to secure its own social media account raises concern about its capacity to protect hundreds of millions of investors,” Peterson remarked.
Notably, the SEC's erroneous post lingered online for 20 minutes, attracting at least 4.4 million views within that period, described by Bitcoin proponent Leyah Heilpurn as blatant market manipulation. Additional insights into how the SEC's X account was violated remain restricted. In spite of this unfolding situation, Eric Balchunas, Bloomberg ETF analyst maintained his belief in the official approval of spot Bitcoin ETFs, expected between 4-5 pm Eastern Standard Time on January 10.
Published At
1/10/2024 2:04:13 AM
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