US Senators J.D. Vance and Thom Tillis have issued a strong call to the SEC Chair Gary Gensler, demanding a comprehensive report on the recent breach of the SEC's X (formerly Twitter) account.
The incident, occurring on January 9th, involved a false tweet about the approval of Bitcoin ETFs, sparking temporary excitement in the crypto community.
Did you know?
Want to get smarter & wealthier with crypto?
Subscribe - We publish new crypto explainer videos every week!
10 Biggest Crypto Scams & How to Avoid Them (ANIMATED)
This breach has raised significant concerns over the SEC's cybersecurity measures, as the false tweet contradicted the commission's core mission of maintaining market integrity.
The senators emphasized the gravity of the situation, describing it as "antithetical" to the SEC's responsibility to protect investors and ensure efficient markets. They highlighted the confusion and potential market manipulation arising from such incidents.
Their letter, dated January 9th, requested a detailed report from the SEC by January 23rd, underlining the urgency of understanding the breach's impact and the SEC's response to it.
High-profile government officials echoed the concern, including Senators Cynthia Lummis, Bill Hagerty, and Representative Ann Wagner. They stressed the importance of transparency in such situations.
Gensler later confirmed the account's compromise, revealing that the unauthorized tweet was the result of the SEC's X account being hacked. This incident has raised eyebrows about the SEC's preparedness against online threats, especially since an internal investigation revealed the account lacked two-factor authentication.
The SEC's X report clarified that the breach was due to a third party gaining control over a phone number associated with the @SECGov account, not a direct breach of X's systems.
The senators' request for a report from the SEC reflects the broader concern about cybersecurity in government agencies and its implications for financial markets. The outcome of this incident could have far-reaching consequences on how cybersecurity is managed within key financial regulatory bodies and the broader impact on investor confidence and market stability.
