- Unauthorized tweet from compromised SEC Twitter account falsely claimed Bitcoin ETFs were approved, causing temporary confusion
- SEC clarified the tweet was unauthorized and incorrect – no Bitcoin ETFs have actually been approved yet
- SEC maintains high standards for any potential Bitcoin ETF approval due to past concerns around volatility, liquidity and fraud
The Securities and Exchange Commission (SEC) has denied approving any Bitcoin exchange-traded funds (ETFs), after a compromised Twitter account spread misinformation earlier today.
Unauthorized Tweet Creates Confusion
On Tuesday afternoon, the SEC’s official Twitter account, @SECGov, posted a tweet claiming that the agency had approved several Bitcoin ETFs. However, the SEC soon clarified that this tweet was unauthorized and incorrect.
According to an SEC spokesperson who commented on the incident, “The SEC’s @SECGov Twitter account has been compromised. The unauthorized tweet regarding bitcoin ETFs was not made by the SEC or its staff.”
It appears that the SEC’s Twitter account was hacked by an outside party, who then used the account to spread false information about Bitcoin ETF approvals. This caused temporary confusion and volatility in cryptocurrency markets, until the SEC was able to publicly deny the false tweet.
SEC Has Not Yet Approved Any Bitcoin ETFs
While there are several Bitcoin ETF applications currently under review by the SEC, the agency states that it has not yet approved any of these proposals.
The SEC has rejected multiple Bitcoin ETF applications in the past, citing concerns around volatility, liquidity, and potential for manipulation and fraud in the underlying Bitcoin markets.
Any real approval of a Bitcoin ETF would mark a major milestone for cryptocurrency adoption and regulation. However, the SEC maintains that it still has not found any Bitcoin ETF proposals that meet its standards for protecting investors.
Tuesday’s incident highlights the power of social media to rapidly spread misinformation and influence markets. It also underscores the importance of account security at major regulatory agencies like the SEC.
For now, the SEC’s stance on Bitcoin ETFs remains unchanged, despite the unauthorized tweets suggesting otherwise. The agency will continue its thorough review of each proposal and is unlikely to approve any funds that fail to meet its high standards.
