SEC Faces Scrutiny Amid Bitcoin ETF Approval Chaos

On January 9, the crypto community's excitement over the long-awaited spot Bitcoin exchange-traded fund (ETF) approval turned into confusion as the initially approved tweet mysteriously vanished.

Approval Tweet Deleted Amid Alleged SEC Hack

SEC Chairman Gary Gensler attributed the disappearance to a purported hacking of the SEC’s X profile, raising questions about the security of regulatory systems.

Crypto Market Chaos Follows Fake Approval

The fake approval triggered market chaos, resulting in the liquidation of over $300 million in Bitcoin (BTC) and prompting U.S. lawyers and senators to call for a congressional probe into the SEC’s handling of the situation.

US Congress Urged to Investigate SEC’s Handling

Amid claims of SEC victimization, legal experts suggest the SEC may conduct an internal investigation into the peculiar circumstances surrounding the false announcement and the resulting cryptocurrency market fluctuations.

SEC's Blurred Mandate Boundaries

Experts argue that the SEC's actions in the crypto market demonstrate a blurring of its mandate boundaries. Critics highlight the need for clarity, emphasizing the SEC's role in safeguarding against market manipulation.

Congressional Criticism and Demand for Answers

US Congress members and representatives criticized the SEC and Chairman Gary Gensler, demanding answers about the incident that impacted millions of investors. Representative Ann Wagner labeled it as "clear market manipulation."

Call for Answers and Internal SEC Investigation

Wagner expressed intent to seek more answers from Chair Gensler, stressing the necessity for an investigation given the significant impact on Bitcoin's price and the SEC's alleged violation of its own cybersecurity rules.

Bitcoin ETF Applicants Slash Fees in Competitive Battle

As the SEC remains silent on its internal investigation plans, 10 financial institutions await approval for their spot Bitcoin ETF applications. In the meantime, these companies engage in a competitive fee-slashing battle to attract investors.

The SEC's response to the Bitcoin ETF fiasco raises concerns about its ability to safeguard the market. A comprehensive investigation is crucial to restoring confidence and ensuring regulatory integrity in the crypto space.