The SEC Faces Criticism Over Bitcoin ETF Approval Announcement

The well-known whistleblower Edward Snowden recently criticized Gary Gensler, the Chair of the United States Securities and Exchange Commission (SEC), for an error in announcing the approval of a Bitcoin spot Exchange-Traded Fund (ETF). Snowden accused Gensler of making an inaccurate statement, raising concerns about the legitimacy of the SEC, market manipulation, and cybersecurity within the organization.

Hacking Incident and Misleading Announcement

In the beginning of the dispute, the official Twitter account of the SEC was hacked. False information regarding the authorization of Bitcoin spot ETFs for listing and trading was disseminated through this unlawful tweet. The tweet garnered millions of views before it was removed, causing a significant change in the price of Bitcoin, which experienced a temporary surge followed by a steep decrease.

Snowden’s Criticism and Widespread Concerns

Edward Snowden, who is currently residing in Russia and sought in the United States on espionage charges, expressed his dissatisfaction with Gensler through his official Twitter account. He criticized Gensler by stating, “Jesus Christ Gary, get your shit together” and “You had one job.” Many crypto enthusiasts and Wall Street executives share similar sentiments, questioning Gensler’s approach to regulatory policy. Gensler is known for his heavy-handed approach to crypto regulation, often exceeding his legislative power.

SEC’s Jurisdiction and Cybersecurity Concerns

These events shed light on the problematic position of the SEC in the cryptocurrency industry. The SEC has been accused of overstepping its jurisdiction and blurring the boundaries of its mandate. Additionally, the hacking incident has raised concerns about the SEC’s cybersecurity measures, which have recently been strengthened to ensure regulated firms report significant cybersecurity incidents and strategies.

Impact on Bitcoin Price and SEC’s Reputation

The misleading announcement not only affected the price of Bitcoin in the market but also raised significant concerns about the SEC’s ability to handle sensitive information and maintain market stability. As the industry awaits the SEC’s decision on spot Bitcoin exchange-traded funds (ETFs), the legitimacy and methodology of the regulatory body continue to be scrutinized.

Conclusion

The criticism from Edward Snowden and the hacking incident have brought attention to the SEC’s handling of the Bitcoin ETF approval announcement. The incident has raised doubts about the SEC’s ability to protect sensitive information and maintain market stability. The unfolding narrative surrounding this cybersecurity breach and its impact on the crypto market continues to evolve, leaving the industry in anticipation of the SEC’s judgment.