The U.S. Securities and Exchange Commission (SEC) found itself at the center of an investigation into market manipulation after a hacked tweet falsely claimed the approval of the first spot Bitcoin ETF. Senior journalist Charles Gasparino reported that SEC lawyers informed Fox Business about the need for an internal investigation into the agency’s potential role in moving Bitcoin’s price up and down following the misleading tweet. US SEC’s X compromised 
The SEC disclosed that an unauthorized user briefly accessed its X social media account (formerly Twitter) on Tuesday, posting a fake message claiming <a href="https://news.todayq.com/etf-approval-hopes-pump-bitcoin-to-21-month-high-whats-next/" target="_blank" rel="noopener noreferrer nofollow">approval of Bitcoin ETFs</a>. The agency clarified that it has not yet approved spot Bitcoin ETFs, and the unauthorized access to its account has been terminated. The SEC intends to collaborate with law enforcement to investigate the hack and any related conduct.
X, the social media platform owned by <a href="https://news.todayq.com/elon-musks-startup-named-xai-bags-binance-listing/" target="_blank" rel="noopener noreferrer nofollow">Elon Musk</a>, confirmed the SEC account compromise, attributing it to an “unidentified individual” obtaining control over a phone number associated with the SEC’s account through a third party. Notably, the SEC did not have two-factor authentication enabled at the time of the compromise.
Following the false tweet, Bitcoin prices surged but quickly retraced below $46,000 after the SEC clarified the misinformation. As of the latest update, Bitcoin was trading at nearly $45,958. What’s next? 
Approximately a dozen companies have applied to list ETFs backed by Bitcoin in the U.S., and the SEC has until January 10 to take action on at least one of those applications. Speculation within the crypto industry suggests the regulator may use this date to announce multiple decisions simultaneously.
Two critical requirements must be met before a spot-backed Bitcoin ETF can begin trading. Firstly, the SEC must approve 19b-4 filings by the exchanges set to list the ETFs. Secondly, the regulator must greenlight the S-1 forms, the registration applications from the prospective issuers, which include BlackRock and Fidelity.
The SEC is expected to vote on the exchanges’ filings (19b-4s) this week, and there is uncertainty regarding whether the agency will take simultaneous action on the issuers’ applications (S-1s). If the SEC grants approvals for both sets of requirements, the ETFs could potentially commence trading as soon as the next business day. The unfolding developments highlight the heightened anticipation and scrutiny surrounding the potential approval of a spot Bitcoin ETF.
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False ETF approval tweet puts SEC under investigation for Bitcoin’s swings

Todayq News

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