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US Senators Demand Gary Gensler ’s Report on X Company Violation!!! US Senators J.D. Vance and Thom Tillis expressed their concerns about the Commission’s internal cybersecurity procedures and demanded clarity on the incident. Two United States senators are calling on Congress to submit a report to the United States Securities and Exchange Commission (SEC) regarding the violation of X ’s (formerly Twitter) account on January 9.
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US Senators J.D. Vance and Thom Tillis, in their letter to SEC Chairman Gary Gensler on the same day, stated that the incident raised “serious concerns” about the commission’s internal cybersecurity procedures. They also described the incident as completely contrary to the aim of “protecting investors, maintaining fair, orderly, and efficient markets, and facilitating capital formation.”
Due to their concern about the recent hacking incident, the two senators, who said they created “wide-ranging confusion,” asked the SEC to submit a report on the incident and referred to a recently completed regulation on cybersecurity disclosures. The letter sent on January 9 sets a deadline of January 23. The letter also reminds all businesses of their obligation to disclose the impacts on the business within four days of cybersecurity incidents.
“If this ‘compromised’ social media post is indeed the result of a cybersecurity attack, is it possible for the Commission (SEC) to submit a report on the violation to Congress within four business days? If not, can you explain why?”
The incident occurred on January 9; the SEC’s X account shared a false tweet claiming that exchange-traded funds (ETFs) trading spot Bitcoin (BTC) in the US were approved. However, the excitement in the crypto community was short-lived after Gensler announced that the SEC’s X account was hijacked and used to send an unauthorized tweet.
Many people highlighted that the SEC was unprepared for cyber-attacks and online threats (Gary Gensler)
While investors and markets reacted unpredictably in the chaotic environment, many people emphasized that the SEC was unprepared for cyber-attacks and online threats. An internal review by X confirmed that the SEC account did not use two-factor authentication at the time of the breach. The X report also added:
“According to the results we have reviewed, the security breach does not originate from X systems, but was carried out by an unidentified individual who took control of a phone number associated with the @SECGov account through a third party.”
Various senior government officials, including Senator Cynthia Lummis, Bill Hagerty, and Representative Ann Wagner, reiterated the thoughts of Congress members.
While Hagerty demanded a full explanation of the incident, Lummis emphasized the risks brought by fake announcements, asking for clarity on events that can “manipulate markets.”