The recently famous whistleblower Edward Snowden attacked Gary Gensler, chairman of the United States Securities and Exchange Commission (SEC), for a serious error involving a fraudulent statement regarding the approval of a bitcoin spot exchange-traded fund (ETF). Gensler was accused of making the announcement in an inaccurate manner. Because of this event, concerns were raised about the legitimacy of the Securities and Exchange Commission (SEC), as well as concerns about market manipulation and cybersecurity within the regulatory body.
At the start of the controversy, the official Twitter account of the Securities and Exchange Commission (SEC) was hacked, leading to the spread of false information that the SEC had cleared a Bitcoin spot ETF for listing and trading. This illegal tweet, which was seen millions of times before it was removed, led to a significant change in the price of Bitcoin, which spiked for a short period of time before witnessing a sharp decline.
Snowden, who is now in Russia and wanted in the United States on espionage charges, took to his official account to express his displeasure with Gensler. He said, “Jesus Christ, Gary, get better” and “You’ve had a job.” The statements he made reflected a more widespread sentiment among crypto fans and Wall Street executives who questioned Gensler’s approach to regulatory policy. According to many familiar with the business, Gensler is known for his heavy-handed approach to crypto regulation, often going beyond the scope of his legislative authority.
These events have brought to light the problematic position that the Securities and Exchange Commission (SEC) plays in the cryptocurrency business. Many people accused the SEC of overstepping its jurisdiction and blurring the lines of its mandate. Additionally, the hacking event drew attention to the cybersecurity procedures the SEC has implemented, which were recently strengthened to compel regulated firms to report significant cybersecurity incidents and tactics.
This was part of a larger narrative in which the Securities and Exchange Commission (SEC) is preparing for a major announcement regarding the approval of a Bitcoin spot ETF. The fake Bitcoin ETF statement was part of that larger narrative. This authorization is a significant step in the development of the cryptocurrency market, which is already worth $1.7 trillion and has the potential to attract millions of individual investors. However, the timing and security of these approvals have been questioned as a result of the event and the SEC’s response.
Overall, the event not only had an impact on the price of Bitcoin in the market, but also raised significant concerns about the capacity of the SEC to handle sensitive information and keep the market stable. While the industry waits for the SEC to make a judgment on spot bitcoin exchange-traded funds (ETFs), the regulatory body’s legitimacy and methodology continue to be scrutinized.
At the time of writing, Edward Snowden has deleted his tweet criticizing the SEC and its chairman, Gary Gensler, adding another layer of complexity to the unfolding narrative surrounding this cybersecurity breach and its ramifications in the crypto market.
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