Representative Patrick McHenry, Chairman of the House Financial Services Committee, has joined the Chairman of the Subcommittee on Oversight and Investigations, Bill Huizenga, the Chairman of the Subcommittee on Digital Assets, Financial Technology and Inclusion, French Hill, and the Chairman of the Subcommittee on Capital Markets, Ann Wagner, in demanding to know how the Securities and Exchange Committee’s X account was hacked.
Yesterday, a bogus announcement on Bitcoin ETF approvals was distributed on the SEC’s X account, which was soon deleted. Chairman Gary Gensler took to his X account to denounce the statement. The SEC explained the account had been “compromised,” while other reports indicated that two-factor verification had not been configured on the important communication vehicle for the SEC.
Following the bogus statement on Bitcoin ETF approvals, the SEC officially announced approval today.
The letter sent by the Committee Republicans said the failure by the SEC is “unacceptable, and it is disturbing that your agency could not even meet the standard you require of private industry. ”
The Representatives demanded:
“Last year, the SEC adopted a cybersecurity risk management rule requiring companies to disclose within four business days if a “material” cybersecurity incident occurs. The disclosure must include a description of the nature, scope, and timing of the incident. Given yesterday’s tweet, we expect the SEC to hold itself to the same requirements that are imposed on companies throughout the country. All market participants deserve transparency from you and your agency.”
This is not the first time the SEC has endured a security breach during the tenure of Chairman Gensler.
The Committee is demanding a response by the Commission no later than January 17th.
