United States lawyers and senators are urging Congress to initiate an investigation into the Securities and Exchange Commission (SEC) following a reported compromise of its X account. The account falsely announced the approval of spot Bitcoin exchange-traded funds, causing a stir in the market.
U.S. Senator Bill Hagerty voiced his concern over the incident, stating that such a significant market-moving error would have demanded accountability if it had been made by a public company. He emphasized that Congress needs answers and termed the incident as unacceptable.
Charles Gasparino of Fox Business shared insights from securities lawyers, suggesting that the SEC might have to investigate itself for potential market manipulation. Bloomberg ETF analyst James Seyffart speculated that SEC’s Chair Gary Gensler would be extremely displeased with the staff member responsible for the security breach, assuming that was the cause of the incident.
Investment manager Timothy Peterson of Cane Island Alternative Advisors raised concerns about the SEC’s ability to protect investors when it couldn’t secure its own social media account. He labeled the security breach as a potential market manipulation event, which is ironically what the SEC is tasked to guard investors against.
Bitcoin advocate Leyah Heilpurn pointed out that the SEC’s false post remained visible for 20 minutes before it was removed, during which it garnered at least 4.4 million views. She labeled the incident as absolute market manipulation.
Despite the controversy, the SEC has not provided further details about how its X account was compromised. Meanwhile, Bloomberg ETF analyst Eric Balchunas stated that he is still anticipating the official approval of the spot Bitcoin ETFs between 4-5pm Eastern Standard Time on Jan. 10.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | negative |
| Relevance Score | 1 |
| People | Charles Gasparino, Timothy Peterson, Bill Hagerty, James Seyffart, Eric Balchunas, Leyah Heilpurn, Gary Gensler |
| Companies | Securities and Exchange Commission, Bloomberg, Cane Island Alternative Advisors, Fox Business |
| Currencies | Bitcoin |
| Securities | None |
