Lawmakers Are Out for Blood After a Hack of the SEC’s X Account Causes Bitcoin Chaos
WiredJan 08
The Facts
The US Securities and Exchange Commission (SEC) on Tuesday confirmed that an "unauthorized" post on X, formerly known as Twitter, falsely claiming the approval of spot bitcoin exchange-traded funds (ETF) was the consequence of its account being "compromised."
The since-deleted post falsely announced that the SEC would allow Bitcoin ETFs "on all registered national securities exchanges" while misquoting SEC Chair Gary Gentler as having stated the approval "enhances market transparency" and provides "efficient access to digital asset investments within a regulated framework."
The Spin
Pro-establishment narrative
This incident is unlikely to instill confidence in X’s security. Elon Musk downsized the platform’s security team when he purchased X, and bad actors have found ways to make a negative impact by exploiting security weaknesses. The future of X is in doubt.
Establishment-critical narrative
The SEC is at fault here for bizarrely failing to have two-factor authentication on X. This is an unforgivable mistake by the regulatory body that people are supposed to be able to trust to keep the US market safe. This public embarrassment is reason to question whether the SEC is competent.