Is the SEC suspected of market manipulation? Industry experts' views on fake news about Bitcoin ETF approval

Lawyers and senators urge Congress to ask the Securities and Exchange Commission to investigate previous incidents involving the commission’s (formerly Twitter) account being compromised and incorrectly tweeting about the approval of a spot Bitcoin exchange-traded fund (ETF) information.

"Just as the SEC would hold a public company accountable if it made such a huge market mistake, Congress needs to understand what just happened. This is unacceptable," U.S. Senator Bill Hager Ti said in a post on the X account on January 9.

U.S. Senator Cynthia Lummis also asked the U.S. Securities and Exchange Commission (SEC) to provide a level of transparency into the events that led to the false posts.

Fox Business's Charles Gasparino said securities lawyers told him the SEC "has to investigate itself" for possible market manipulation.

Bloomberg ETF analyst James Seyffart

said SEC Chairman Gary Gensler would be angry with the staff responsible for the alleged security breach.

"Gary would want someone to work for this. (Honestly, I would do the same if I were him)."

Others, such as

investment manager Timothy Peterson

of Cane Island Alternative Advisors, have claimed that the

SEC security breach was a potential incident of market manipulation, which is what the commission is supposed to protect investors from. Violation incident. “@SECGov can’t even protect its own social media accounts, how can it protect hundreds of millions of investors,” Peterson said.

James (MetaLawMan) Murphy

(James (MetaLawMan)) Murphy added in a post directed at Gensler: "I'm not pointing fingers, but the negligence of someone in your organization just destroyed got some real investors.”

Bitcoin advocate Layah Heilpern noted that the SEC’s false post lasted for 20 minutes before being removed and received at least 4.4 million views during that time.

"This is absolutely market manipulation," Heilpern claimed.

Fake News on Spot Bitcoin ETF on SEC X Account. Source: X

The SEC did not provide further details about how its X account was compromised, but denied that its staff was involved in posting the unauthorized tweets.

Despite the news, Bloomberg ETF analyst Eric Balchunas said he still sees 4:00 pm to 5:00 pm ET (9:00 pm to 10:00 pm UTC) on January 10 News of the official approval of the Bitcoin spot ETF during the period.

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