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Bitcoin ETF: SEC Has 4 Days to Disclose Events Around Fake Approval News
- The ongoing drama of Spot Bitcoin ETF approvals in the US reached a new height when the SEC mistakenly tweeted their approval.
- The SEC later attributed this blunder to a ‘compromised’ tweet, prompting lawyer Stuart Alderoty to demand a public explanation in line with the agency’s own standards.
- Amid the SEC’s ‘slipup’ and with the ETF approval deadline looming, speculation has arisen about whether the approval will be delayed for further investigation.
The saga around the approval of Spot Bitcoin ETFs in the United States has been full of drama and plot twists. Now, in the latest, and potentially last twist, the US Securities and Exchange Commission (SEC) has caused a major bungle. A tweet stated that the ETFs had been approved, but this was a false alarm and quickly labelled by the SEC as a ‘compromised’ tweet.
Lawyer Says SEC Standards Demand Action
Now, Attorney and SEC expert Stuart Alderoty tweeted shortly after the SEC’s PR disaster that, going by the agency’s own rules, it should publicly disclose what happened – within four days. The Chief Legal Officer for Ripple, who had his fair share of dealings with the SEC, said they should also provide a “description of its processes for assessing, identifying, and preventing such cybersecurity threats.”
Alderoty added that he is going nowhere in a hurry, waiting for that report.
SEC Now Faces Scrutiny, What Does it Mean for ETFs?
So, with all that said and the deadline for the ETF approval hours away, what is going to happen next? Will the SEC simply say “ok folks, yesterday is yesterday and today we shall ceremoniously approve those long-awaited ETFs, you’re welcome?”
Not if we can believe unofficial reports, which crypto commentator MartyParty cited, saying that insiders told Bloomberg the Spot ETF must be delayed and the ‘hack’ be investigated first.
Of course, after all the drama of the past few weeks and months this doesn’t sit well with a lot of crypto natives – and some seem to be losing patience fast.
Timeline of a Disaster-Tweet
Here is how it all happened, courtesy of WalkerAmerica who documented the events (times are PM, local time, US Eastern):
- 3:11 SEC tweet about ETF approval gets posted.
- 3:26 SEC Chair Gensler tweets, saying SEC account was ‘compromised.’
- 3:38(ish) according to the SEC, this is when they took back control and deleted the tweet in question.
- 3:42 SEC posts tweet, claiming an ‘unauthorised post’ was responsible and that the ETF was not yet approved.
If the Twitter/ X account of the SEC was hacked, it would have been one of the fastest recoveries in history. Which led trading expert Ben Cowen to virtually scratch his head how this was even possible.
However, a report by Fox Business reporters Charlie Gasparino and Eleanor Terrett said that a lawyer close to the matter stated “it would be unprecedented for the commission now to reject the applications after recently expediting matters with applicants.”
Either way, we won’t have to wait long for an update on the matter. It’s possible that all this was merely an error by an eager intern – which nevertheless cost some investors real money.
Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
