A Misleading Message That Annoys Republicans
Recently, a communication error from the Securities and Exchange Commission (SEC) has sparked a strong reaction among US lawmakers, particularly the Republicans in the House of Representatives.
One day before the actual approval of Bitcoin ETFs, the SEC mistakenly published on its X account (formerly Twitter) an erroneous post that officially announced the approval of Bitcoin ETFs. This inaccurate announcement was quickly corrected by SEC Chairman Gary Gensler, who confirmed that the SEC’s account had been compromised.
In response, the SEC stated that it is currently working with the FBI to determine the causes of this incident.
According to recent reports, the SEC had forgotten to activate two-factor authentication (2FA) on its account. This oversight has been strongly criticized by members of Congress, who have described this negligence as ‘unacceptable’.
Republicans’ Demands Regarding This Incident
Facing this mistake, Republicans, under the leadership of Patrick McHenry, Chairman of the House Financial Services Committee, have demanded clear answers from the SEC. They have emphasized the importance of transparency and compliance with security standards, reminding the SEC that it should adhere to the same requirements it imposes on other market entities.
The ability of the US Securities and Exchange Commission (SEC) to fulfill its mission (protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation) is directly linked to the Commission’s ability to communicate with market participants.
the lawmakers stated
The final approval of Bitcoin ETFs, although hailed as a historic breakthrough by some lawmakers, including Representative Wiley Nickel, has also highlighted the need for clearer legislation regarding cryptocurrencies.