Could the SEC Twitter Breach Further Delay Spot Bitcoin ETFs?

10 months ago 10

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In a twist that has stunned the crypto world, the official Twitter account of the U.S. Securities and Exchange Commission (SEC) has been hijacked, leading to a tumultuous downturn in the market. The timing couldn’t have been worse, as the hack occurred just as the long-awaited decision on a spot Bitcoin ETF was set to be announced.

The @SECGov twitter account was compromised, and an unauthorized tweet was posted. The SEC has not approved the listing and trading of spot bitcoin exchange-traded products.

— Gary Gensler (@GaryGensler) January 9, 2024

Bitcoin Price Dips

The fallout was immediate and dramatic. Bitcoin, which had surged to an all-time high of $47,000 just a day earlier, nosedived to $45,920 following the breach. This abrupt descent has rattled many investors, prompting widespread speculation about the cryptocurrency market’s future trajectory.

Conspiracy or Coincidence?

While the cause of the delay remains shrouded in mystery, some industry insiders believe that the SEC’s compromised account could be a contributing factor. Notably, Mr. Huber, a prominent figure on social media, contends that the SEC may be leveraging the hack as a convenient excuse to defer the Bitcoin ETF decision. He suggests that the regulatory body might be prioritizing its own agenda over transparent, rule-based governance.

Twitter’s investigative team has confirmed the breach, pointing towards a potential SIM swap as the modus operandi. Alarmingly, it was also revealed that the SEC’s account lacked basic two-factor authentication (2FA) safeguards, leaving it vulnerable to such breaches.

Calling for Transparency

After the blunder of the SEC account hack, Representative Darrell Issa, head of the House Committee on Oversight and Government Reform, has demanded that Gary Gensler, Chairman of the Commodity Futures Trading Commission (CFTC), disclose all personal emails he sent to the agency staff for official purposes.

The request follows an internal report that revealed Gensler frequently communicated with staff via a personal email account during the collapse of futures broker MF Global. Issa suspects that Gensler may be attempting to violate federal transparency laws by shielding these emails from public view. Reuters

Market Outlook

Despite the fake tweet frenzy, Bloomberg analyst James Seyffart remains optimistic, asserting that the fabricated SEC announcement is unlikely to derail the impending Bitcoin ETF approval. He anticipates that trading could commence as early as Thursday, signaling a potential rebound for Bitcoin and the broader crypto market.