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The US Securities and Exchange Commission (SEC) is facing flak after Chairman Gary Gensler confirmed that the company’s X account was “compromised” to unfold false info that spot Bitcoin exchange-traded funds (ETFs) had acquired the regulator’s nod.

A piece of the crypto group believes that the SEC itself is in charge for the fiasco, in addition to the turmoil within the crypto market that ensued. Senior Bloomberg ETF analyst Eric Balchunas took to X, the social media platform beforehand generally known as Twitter, and mentioned the SEC was behind the entire mix-up. According to Balchunas, it was a case of “a scheduled tweet gone bad”.

Is SEC Trying To Cover Up Its Mistake?

In a separate X put up, Balchunas mentioned the SEC might need scheduled the tweet for January 10, the deadline set by the company to approve spot Bitcoin merchandise, however a employees member mis-scheduled it for Jan. 9.

The feedback got here after Elon Musk-led X acknowledged that SEC’s account was hacked, with an unidentified particular person having access to a cellphone quantity linked to the account by way of a 3rd get together. The social media platform went on to say that two-factor authentication was disabled on the SEC’s account on the time of the breach.

Notably, Balchunas shouldn’t be the one one who’s skeptical of the SEC’s facet of the story. Former White House communications director Anthony Scaramucci mentioned Gensler was lying when he mentioned that the company’s X account was “compromised”. Scaramucci believes an SEC employees member prematurely shared the information, which mirrored “the amateurish and dishonest nature of the current SEC leadership regime.”

Interestingly, after Balchunas polled X customers asking the place the “approval” tweet got here from, greater than 83% of the voters mentioned it got here from “inside the SEC”.

Crypto Market Bore the Brunt of Fake Spot Bitcoin ETF Approval News

The faux Bitcoin ETF approval announcement spurred a short rally in Bitcoin (BTC) costs, with the OG cryptocurrency reaching a contemporary 19-month excessive of $47,900. Then, Bitcoin fell to as little as $45,100 after Gensler debunked the false spot Bitcoin ETF approval information. At press time, the BTC value stood at 45,807, down over 2% previously 24 hours.

Meanwhile, as many as 11 firms — together with BlackRock, Fidelity, Grayscale, and VanEck — have sought the SEC’s permission to launch a spot Bitcoin product, with the ultimate choice on the joint Bitcoin ETF proposed by Ark Invest and 21Shares anticipated to be taken on Dec 10.

Also Read: Coinbase Executives Offer Expertise Amid SEC’s X Turmoil

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