The US Securities and Exchange Commission is facing massive backlash over fake Bitcoin ETF approval posts

The U.S. Securities and Exchange Commission (SEC) is facing criticism after Chairman Gary Gensler confirmed that the agency's X account was “compromised” to spread false information that spot Bitcoin exchange-traded funds (ETFs). ) had received approval from the regulatory authority.

A section of the crypto community believes that the SEC itself is responsible for the fiasco and the resulting turmoil in the crypto market. Bloomberg senior ETF analyst Eric Balchunas reached out to X, the social media platform formerly known as Twitter, and said the SEC was behind the whole mix-up. According to Balchunas, it was “a planned tweet that failed.”

Is the SEC trying to cover up its mistake?

In a separate post

The comments came after Elon Musk's X admitted that the SEC's account was hacked and an unidentified person gained access to a phone number linked to the account through a third party. The social media platform further explained that two-factor authentication was disabled on the SEC account at the time of the breach.

Notably, Balchunas is not the only person skeptical of the SEC's view. Former White House communications director Anthony Scaramucci said Gensler lied when he said the agency's X account had been “compromised.” Scaramucci believes an SEC employee shared the news prematurely, which reflected “the amateurish and dishonest nature of the current SEC leadership regime.”

Interestingly, after Balchunas asked X users where the “approval” tweet came from, more than 83% of voters said it came from “inside the SEC.”

The crypto market suffered from fake spot Bitcoin ETF approval news

The fake Bitcoin ETF approval announcement sparked a brief surge in Bitcoin (BTC) prices, with the OG cryptocurrency hitting a new 19-month high of $47,900. Then Bitcoin fell as low as $45,100 after Gensler debunked the fake news about Bitcoin ETF approval. At press time, BTC price was at 45,807, down over 2% in the last 24 hours.

Up to 11 companies – including BlackRock, Fidelity, Grayscale and VanEck – have now applied for permission from the SEC to launch a spot Bitcoin product. The final decision on the joint Bitcoin ETF proposed by Ark Invest and 21Shares is expected to be made Dec. 10.

Also Read: Coinbase Executives Offer Expertise Amid SEC X Turmoil

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