Congressional Scrutiny on SEC Over Social Media Account Hack

By: Isha Das

The U.S. Securities and Exchange Commission (SEC) has come under congressional scrutiny following a security breach of its official social media account, X (formerly Twitter). The account was compromised and used to post false information about the approval of a Bitcoin exchange-traded fund (ETF), creating market volatility. X's investigation revealed that the breach was enabled due to the SEC’s failure to implement vital security measures, including two-factor authentication.

On revelation, SEC Chairman Gary Gensler countered the post, indicating that no such approval took place. However, several U.S. lawmakers have since pulled the SEC into the spotlight, demanding an official investigation into the security practices of the regulatory entity.

The irony of the situation was highlighted by the crypto community and lawmakers alike. Prior to the incident, Gensler had been urging his followers to implement strong security measures. Yet, this event demonstrated the lax security protocols of the entity he leads. Senators J.D. Vance and Thom Tillis were among those criticising the SEC, describing such oversight as unacceptable for the regulatory body overseeing the global capital markets.

The incident has brought transparency, accountability, and security practices, with potential implications for market manipulation, into focus. As repercussions extend further than social media, the incident has spurred calls for an in-depth investigation into the security practices of regulatory bodies and how such breaches can affect investors on a significant scale.