SEC Chair Gary Gensler To Get More Letters On ETF Fiasco Today

On Tuesday, January 9, U.S. Senators, JD Vance and Thom Thrills sent a letter to the Securities and Exchange Commission (SEC) demanding an answer to the recent X account hack and Bitcoin ETF approval farce. In addition, according to Fox Journalist, Eleanor Terrett, more congressional letters are set to hit SEC Chairman Gary Gensler’s inbox.

Also Read: VanEck Advisor Labels SEC’s Fake Bitcoin ETF Approval Post As ‘Inside Job’

Senators’ Stance On Recent Bitcoin ETF Controversy

In a joint letter addressed to Gary Gensler, the Senators expressed deep concern over the agency’s social media communication regarding the errant approval of Spot Bitcoin ETFs. They highlighted a critical timeline where the SEC’s official X account initially announced approval, causing a surge in Bitcoin’s value. However, they later clarified the announcement as unauthorized, citing that their social media account was hacked.

Moreover, the letter emphasizes the potential impact on investors and questions the SEC’s internal cybersecurity procedures. Senators are demanding clarity, urging the SEC to address the nature of the breach, provide details on the investigation, and explain plans to rectify financial losses for affected investors. The SEC is urged to respond to the inquiries by January 23, 2024, as Vance and Thrills call for transparency amid this significant regulatory mishap.

In addition, the letter questioned the regulatory body if any employee was behind the account breach or if a third party was to be blamed. Furthermore, the Senators deemed the false Spot Bitcoin ETF approval post as a “colossal error” on the SEC’s part. In the letter, they stated, “It is unacceptable that the agency entrusted with regulating the epicenter of the world’s capital markets would make such a colossal error.”

SEC Receives Massive Backlash

After the SEC’s X account was compromised and the fake ETF approval post sent shockwaves through the industry, U.S. regulatory agency attracted criticism. In a recent post on X, Rep. Bill Huizenga heavily criticized Gary Gensler. Quoting the SEC Chair’s tweet, Huizenga wrote, “Does this mean we can blame more of the @secgov’s horrible rulemaking and so-called regulation by enforcement on a ‘compromised account’?”

Recently, Bloomberg ETF analyst Eric Balchunas held SEC responsible for the event. According to a post on X by Balchunas, it was a result of a “scheduled tweet gone bad.” In addition, Anthony Scaramucci, the Former White House Communications Director, disputed SEC Chair Gensler’s claim that the agency’s X account was compromised. Scaramucci asserted that a SEC staff member prematurely shared the news. He perceives it as the “amateurish and dishonest nature of the current SEC leadership regime.”

Also Read: US SEC Faces Massive Backlash Over Fake Spot Bitcoin ETF ‘Approval’ Post

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