- The SEC’s Twitter was hacked, causing false claims about Bitcoin ETF approval and temporary market turmoil.
- Senator Bill Hagerty called the hack “unacceptable” and said Congress needs answers about what happened and why the SEC’s security failed.
- The incident may have violated new SEC risk rules and will likely spur cybersecurity reforms at the agency.
The SEC’s official Twitter account was recently hacked, causing temporary market turmoil. Senator Bill Hagerty called the hack “unacceptable” and said Congress needs answers about what happened. This article will examine the details of the hack and the Senator’s response.
The Hack Itself
On Tuesday afternoon, the SEC‘s official Twitter account falsely claimed that Bitcoin ETFs had been approved for listing on all national securities exchanges. SEC Chair Gary Gensler quickly clarified that the account had been hacked and that the announcement was false. Still, Bitcoin’s price spiked nearly $1,000 before crashing back down once the truth came out.
Senator Hagerty’s Response
Senator Bill Hagerty of Tennessee called the hack “unacceptable” and said Congress needs to know exactly what happened. He referenced a previous tweet by Chair Gensler about using strong passwords and two-factor authentication. Hagerty implied the SEC failed to follow its own advice on cybersecurity.
Market Impacts and Violations
The false tweet caused major price swings in the Bitcoin market. Lawyers said the hack may have violated new SEC risk management rules adopted in July. The SEC will likely have to investigate its own failure to prevent the breach.
The hack came right before the SEC was expected to decide on spot Bitcoin ETFs this week. Now the SEC must deal with the fallout of the hack even as it makes major crypto decisions. Senator Hagerty and Congress will demand answers about the unacceptable security lapse.
The SEC’s Twitter hack shows cybersecurity risks remain even for major government agencies. Senator Hagerty is right to call it unacceptable. As crypto markets boom, regulators must ensure they have robust security to avoid market manipulation. This high-profile incident will likely spur overdue reforms at the SEC and beyond.