More US senators are demanding answers from the U.S. Securities and Exchange Commission (SEC) regarding Tuesdays high-profile social media fiasco related to the approval of Bitcoin (BTC) exchange-traded funds (ETF).
Senators Ron Wyden (D-Oregon) and Cynthia Lummis (R-Wyoming) wrote to the inspector general of the SEC on Friday requesting an investigation into the hack on the regulator’s X account.
The SECs failure to follow cybersecurity best practices is inexcusable, particularly given the agencys new requirements for cybersecurity disclosure. Additionally, a hack resulting in the publication of material information for investors could have significant impacts on the stability of the financial system and trust in public markets, including potential market manipulation.”
Someonecompromised the SECs X account on Tuesday and issued a false statement claiming the regulator had approved spot Bitcoin ETF applications, whipping the crypto world into a temporary frenzy.
SEC Chair Gary Gensler took to the social media platform 15 minutes later to explain that his agencys profile had been hacked, and the false statement was deleted later that day. The SEClegitimately approved 11 spot Bitcoin ETFs the following afternoon.
Xs update pageconfirmedthe SEC hack on Tuesday evening but claimed it wasnt due to any breach of the social media giants systems. Rather, an unidentified individual reportedly secured control of a phone number associated with the SECs account.
X also noted that the regulator failed to set up multi-factor authentication (MFA) for its profile, despite the fact that Gensler publicly encouraged investors last year to secure their financial accounts with that very feature.
Hi @GaryGensler this is a reminder to secure your financial accounts as well as protect against identity theft and fraud.
— ZachXBT (@zachxbt) January 10, 2024
Wyden and Lummis specifically called out the SEC’s lack of MFA in their letter.
“We urge you to investigate the agencys practices related to the use of MFA, and in particular, phishing-resistant MFA, to identify any remaining security gaps that must be addressed.”
They aren’t the first senators to call out the SEC on its snafu. On Tuesday, J.D. Vance (R-Ohio) and Thom Tillis (R-North Carolina) sent a public letter to Gensler demanding an explanation for the hack, which they noted led to Bitcoin price volatility and public confusion.
Check Latest News Headlines
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
This article was originally reported on The Daily Hodl.