SEC Faces Scrutiny After Bitcoin ETF Approval Hoax : Here’s What Actually Happened

1 year ago 71

The post SEC Faces Scrutiny After Bitcoin ETF Approval Hoax : Here’s What Actually Happened appeared first on Coinpedia Fintech News

The recent breach of the U.S. Securities and Exchange Commission’s (SEC) X Twitter account, leading to a false announcement about Bitcoin ETF approvals, has triggered an uproar among lawyers, senators, and analysts.

The Call for Investigations

Charles Gasparino of Fox Business, quoting securities lawyers, highlighted the necessity for the SEC to investigate itself regarding alleged market manipulation. Notably, the compromised account incorrectly reported the approval of Bitcoin ETFs, prompting calls from U.S. lawmakers like Senators Bill Hagerty and Cynthia Lummis to demand accountability and transparency from the SEC regarding the breach.

Fraudulent announcements, like the one that was made on the SEC’s social media, can manipulate markets. We need transparency on what happened.

— Senator Cynthia Lummis (@SenLummis) January 9, 2024

SEC’s Response and Allegations

While the SEC acknowledged the breach and confirmed unauthorized access to its @SECGov X account, it emphasized that neither the false post nor the breach was perpetrated by its staff. The commission assured a thorough investigation in collaboration with law enforcement to determine the breach’s nature and related misconduct.

Security breach allegations prompted concerns about market manipulation and investor impact, flagged by U.S. Representative Ann Wagner and echoed by various industry figures. SEC Chair Gary Gensler’s recent warnings on the opaque crypto landscape were seen as preparation for the upcoming ETFs’ potential trade.

Chair @GaryGensler,

Does this mean we can blame more of the @secgov’s horrible rulemaking and so-called regulation by enforcement on a “compromised account”? #askingforafriend

Sincerely,

Chairman of the House Financial Services Oversight and Investigations Subcommittee pic.twitter.com/THqZ2PlVle

— Rep. Bill Huizenga (@RepHuizenga) January 9, 2024

The Fallout

The breach has raised doubts about the ETF approval timeline, with questions looming about the commission’s decision. Industry experts and analysts, including Bloomberg’s Eric Balchunas, remain cautiously optimistic about the anticipated spot Bitcoin ETF approval within a specified timeframe.

Harsh Criticism

Critics highlighted the breach’s potential market manipulation consequences, emphasizing the SEC’s role in protecting investors. Charles Gasparino’s statements underscore the severity of the situation, while Bitcoin advocate Layah Heilpern labeled the incident as “absolute market manipulation,” underscoring its impact on millions of viewers within a short span.

The Path Forward

Amidst mounting pressure and uncertainties, the SEC’s handling of the breach will shape investor confidence, regulatory trust, and future market stability. The need for a comprehensive investigation and clear accountability remains paramount in restoring faith in the commission’s oversight.

The evolving situation has significant implications for regulatory vigilance, investor protection, and the imminent ETF approval landscape, impacting the broader crypto market and investor sentiment.

Read Entire Article