‘A real low point’: Congressman calls out SEC bitcoin ETF drama during House hearing

Rep. French Hill, R-Ark., became the latest member of Congress to criticize the SEC over Tuesday’s security failure

article-image

US Congressman French Hill | Congressman French Hill Facebook page modified by Blockworks

share

Rep. French Hill, R-Ark., kicked off the House Financial Services Committee’ digital assets subcommittee meeting Tuesday afternoon with a dig about the ongoing controversy surrounding the US Securities and Exchange Commission. 

“It’s clear some rogue regulators threaten consumer protections in the digital asset market as much as any bad actor,” Hill said during his prepared remarks at the start of the hearing. “I think we just witnessed the latest in Washington’s technological vulnerabilities yesterday, and a real low point for the SEC.” 

Hill’s comments refer to a market-moving fake post on the SEC’s official X account that claimed the agency had approved bitcoin ETFs

Read more: Gary Gensler says SEC’s X account was compromised, posted fake bitcoin ETF approval news

Fifteen minutes later — and after bitcoin had surged to just under $48,000 — SEC Chair Gary Gensler clarified publicly that the agency’s account was “compromised” and no bitcoin ETF applications were approved. 

“In this Congress, our committee has scrutinized the repeated and proactive efforts by certain Biden financial regulators to take aggressive agency actions against disfavored industries through guidance, rulemaking, supervision and enforcement,” Hill said, mentioning the Financial Stability Oversight Council’s inconsistent track record with crypto. 

Hill added that he and House Financial Services Committee Chairman Patrick McHenry, R-N.C., would issue a letter to Gensler “to start the process of getting to the bottom of how it happened.” 

Senators J.D. Vance, R-Ohio., and Thom Tillis, R-N.C., announced late Wednesday they had also written to Gensler about the incident, calling it an “unacceptable” and “colossal error.” 

Other Republican US senators chimed in as well, including Bill Hagerty, R-TN, and Cynthia Lummis, R-WY. 

Read more: SEC will investigate, ‘determine appropriate’ steps following X account compromise

“Just like the SEC would demand accountability from a public company if they made such a colossal market-moving mistake, Congress needs answers on what just happened,” Hagerty wrote via his X account late Tuesday. “This is unacceptable.”

In a statement shared with Blockworks, the SEC said Wednesday that the compromise incident was referred to the Federal Bureau of Investigation and the securities regulator’s inspector general.

Notably, the agency appears to seek to quash rumors that the tweet in question had been drafted by agency staff and erroneously posted.

“The unauthorized content on the @SECGov account was not drafted or created by the SEC,” the agency said. “We will provide updates on the incident as appropriate.”


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research report - cover graphics (1).jpg

Research

In this report, we dive into crypto private market data to gather insights on where the future of the industry is headed. Despite a notable downturn in private raises, capital continues to infuse promising projects that aim to transform payments, banking, consumer experiences, community, and more, with 2023 being the fourth-largest year for crypto venture capital.

article-image

Revolut said that the standalone crypto exchange is currently “invite only”

article-image

The stock price jump comes after Coinbase reported ending its seven-quarter run of net losses during the fourth quarter

article-image

BUZZ holds shares of Coinbase, Robinhood and MicroStrategy

article-image

Opinion: Even though I didn’t pay for my “Diamond Hands” burger with BTC, don’t let that fool you into thinking that crypto’s development is futile

article-image

The results mark “a major positive inflection point,” one analyst says, as the exchange carries net income momentum into a crypto rally

article-image

While the slate of 10 US spot bitcoin funds have tallied $4.6 billion of net inflows thus far, half of the field is lagging the leaders