U.S. Senators Demand SEC Briefing on Recent X Account Breach, Urge for Enhanced Cybersecurity Practices
Summary:
U.S. Senators J.D. Vance and Thom Tillis have urged the Securities and Exchange Commission (SEC) to present a report to Congress about the recent Jan. 9 X account breach. The senators, concerned about the cybersecurity practices of the SEC, are asking for clarity on the timelines for Bitcoin ETF decisions and remedies for the problems caused by the breach. They've demanded a comprehensive report, including a cybersecurity disclosure detailing all impacts to their business, within four days of the breach.
A pair of U.S. senators, J.D. Vance and Thom Tillis, are urging the U.S. Securities and Exchange Commission (SEC) to present a briefing to Congress regarding the recent breach of the Jan. 9 X account. In their letter submitted to SEC Chair Gary Gensler on the same day, the senators highlighted that the situation raises significant questions about the Commission's existing cybersecurity practices. They also criticized the event for being contradictory to the SEC's mission, which is to safeguard investors, uphold just, organized, and effective markets, and encourage the formation of capital. Prompted by the confusion stirred up by the hack, both senators are asking for a comprehensive report detailing the incident from the SEC. Their request refers to a freshly prepared regulation around cybersecurity disclosures. According to the dated letter, a reply is expected by January 15.
This episode transpired on January 9 when a hoax tweet from the SEC’s X account communicated that spot Bitcoin (BTC) exchange-traded funds (ETFs) had been sanctioned in the U.S. The ripple of excitement within the cryptocurrency community was abruptly interrupted when Gensler announced that the SEC’s X account had been compromised and had disseminated an unauthorized tweet.
Although the original reactions from investors and markets were muddled, it didn’t take long for many to highlight the SEC's lack of readiness against cyber threats. An internal probe from X disclosed that there was no two-factor authentication enabled at the time of the breach. The X probe concluded that control over the @SECGov account was obtained through a third party who managed to take control of an associated phone number.
In their letter, Senators Vance and Tillis requested Gensler to provide clarification on the SEC's timelines for Bitcoin ETF decisions and its remedies for the problems caused by the deceptive approval tweet. Further elaborating their request, the senators asked Gensler for a cybersecurity disclosure, covering all ramifications to their business within four working days from the breach. If the SEC's probe backs X’s findings, then a comprehensive report must be furnished to Congress within four days as well.
Senators' demands for complete transparency on the matter were echoed by Senator Bill Hagerty.
Published At
1/10/2024 8:15:17 AM
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