Explanation of Possible Reasons for SEC’s Potential Delay in Approving Spot Bitcoin ETF Amidst Hack

The crypto community is in a frenzy following an unexpected hack that has caused a downturn in the industry. The culprit? None other than the official Twitter account of the Securities and Exchange Commission (SEC), which was compromised by an unknown hacker. Unfortunately, the timing couldn’t have been worse, as the hack occurred just as the long-awaited decision on a spot Bitcoin ETF was about to be announced.

As a result of the hack, Bitcoin, which had been soaring at a record-breaking $47,000 just 24 hours prior, has now plummeted to $45,920. This sudden and sharp drop has left many investors concerned, with some wondering if this is the start of a broader downturn for the cryptocurrency market.

While it’s uncertain if the breached account is the reason for the delay, some experts believe it could be a possible factor. The SEC has been known for creating buzz and controversies in the past, but this time they have a genuine reason to postpone their decision due to the hack. One industry expert, Mr. Huber, took to Twitter to express his views, suggesting that the SEC may be prioritizing their own interests over following the law when it comes to taking legal action against people or companies.

Mr. Huber accuses the SEC of using the recent hack as an excuse to delay the decision on a Bitcoin ETF. He argues that the hack wouldn’t have impacted the SEC’s ability to make a decision and that this is just another example of the SEC finding excuses to avoid approving the ETF.

Additionally, the investigation team from Twitter has confirmed that the SEC account was indeed hacked, possibly through a SIM swap. It has also been revealed that the SEC account did not have double protection (2FA).

Following the SEC account hack, Representative Darrell Issa, head of the House Committee on Oversight and Government Reform, has demanded that Gary Gensler, Chairman of the Commodity Futures Trading Commission (CFTC), disclose all personal emails he sent to the agency staff for official purposes. This request comes after an internal report revealed that Gensler frequently used a personal email account to communicate with staff during the collapse of futures broker MF Global. Issa suspects that Gensler may be trying to violate federal transparency laws by keeping these emails hidden from the public.

Despite the fake SEC tweet caused by the hack, Bloomberg analyst James Seyffart believes that it will not have any impact on the approval of a Bitcoin ETF. He still expects the ETF to be approved and potential trading to begin on Thursday.