US Senator Ron Wyden, who also serves as the Chairman of the Senate Finance Committee, has called for an official investigation into the recent hacking of the US Securities and Exchange Commission’s (SEC) X account. The request, co-authored by crypto advocate Cynthia Lummis, also seeks to probe the SEC’s alleged failure to implement the best cybersecurity measures to safeguard its digital presence.

On January 9, the SEC’s X account unexpectedly announced the approval of Bitcoin spot ETF trading in the US. However, this announcement was swiftly refuted by the SEC’s Chairman, Gary Gensler, who clarified that the commission’s X handle had been compromised and the ETF-related announcement was false.

Despite the SEC’s eventual approval of the Bitcoin spot ETF launch on January 10, the unauthorized access to one of the commission’s social media platforms has raised concerns among the public. US Senators are now demanding an explanation. On January 11, Senators Ron Wyden and Cynthia Lummis sent a letter to the SEC’s Inspector General, Honorable Deborah J. Jeffery, calling for an investigation into the incident and the Commission’s alleged negligence of its cybersecurity protocols. Additionally, Senators JD Vance and Thom Tillis have written to the Commission’s Boss, Gary Gensler, seeking a comprehensive explanation of the incident.

In their letter to the SEC’s Inspector General, Wyden and Lummis expressed their disappointment with the SEC’s internet security. They pointed out that the hack occurred due to the non-implementation of multi-factor authentication (MFA) on the US regulator’s account. They stated that the absence of an MFA allowed an unauthorized individual to access the SEC’s X account by gaining control of a phone number associated with the account. The Senators argued that the SEC should have implemented the best security measures, including not just an MFA but also a security keys protocol, which is highly recommended by industry experts. They described this act of negligence as inexcusable, as it could potentially lead to market manipulation.

The Senators’ letter stated: “The SEC’s failure to follow cybersecurity best practices is inexcusable, particularly given the agency’s new requirements for cybersecurity disclosure. Additionally, a hack resulting in the publication of material information for investors could have significant impacts on the stability of the financial system and trust in public markets, including potential market manipulation.”

The Senators have now urged Jeffery to initiate an investigation into this incident and identify any existing flaws in the Commission’s cybersecurity protocol. The SEC Inspector General is expected to submit a report by February 12, 2024.

This News Article was automatically generated by Bob the Bot (AI)

Information Details
Geography North America
Countries 🇺🇸
Sentiment negative
Relevance Score 1
People Ron Wyden, Cynthia Lummis, JD Vance, Gary Gensler, Deborah J. Jeffery, Thom Tillis
Companies Senate Finance Committee, US Securities and Exchange Commission (SEC),, Bloomberg
Currencies Bitcoin
Securities None

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