KANALCOIN NEWS – Two United States senators asked the United States Securities and Exchange Commission (SEC) to provide a report on the SEC violations on January 9. US senators asked for a report by next Monday. This incident started with a fake tweet made by someone on the SEC account. In the midst of an unpredictable market, investors and the market perceive the SEC’s unpreparedness for cyber attacks and online threats. This is proven by the SEC account at X being hacked.
U.S. Senators JD Vance and Thom Tillis emphasized that this incident raises serious concerns about the commission’s internal cybersecurity procedures. They also said that this goes against the commission’s mission to protect investors, maintain fair, orderly and efficient markets and facilitate capital formation.
The two senators also asked the SEC to provide a report to Congress regarding this incident. And give a signal to create cyber security regulations so that this incident does not happen again. Because this hacking incident can disrupt market stability and confuse the crypto market.
US Senators sent a letter requesting a report to the SEC and gave a deadline of Monday, January 15, starting from the letter being sent on January 9. And the Letter reminds the SEC of its mandate that requires all businesses to disclose all impacts to the business within four days of a cybersecurity incident, as required by the SEC. The following is an excerpt from the letter sent to the SEC.
“If these compromised social media posts were indeed the result of a cybersecurity attack, would it be possible for the Commission (SEC) to provide a report to Congress regarding the breach within four business days? If not, please explain why.”
This incident began on January 9 when X’s SEC account shared a fake tweet showing a Bitcoin exchange-traded fund (ETF) had been approved in the United States. However, the excitement in the crypto community did not last long because Gensler later annulled the tweet. Gensler also revealed that X SEC’s account had been hacked and used to send unauthorized tweets.
Many people regret this incident. Because this proves that the SEC is less prepared for online threats and cyber attacks. X’s own internal investigation confirmed that the SEC account did not use two-step authentication. Report X also added that based on X’s investigation the hack was not due to a breach of X’s system.
Rather, it was because an unknown person gained control of the phone number associated with the @SECGov account through a third party.
In the letter from Senator Vance and Senator Tillis also requested details about the SEC’s timetable for a Bitcoin ETF decision and its plans to resolve issues related to the fake approval tweet.
As explained, the senators asked Gensler to provide a cybersecurity disclosure detailing all impacts to their business within four business days of the breach. If the SEC investigation confirms investigation X, the SEC is also required to provide a complete report to Congress within four days.
Hagerty (US Senator) also voiced the same sentiment. And demand a complete report on this incident and hope that it does not happen again.
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