In a shocking turn of events, the Securities and Exchange Commission (SEC) announced on Tuesday that their official account on social media platform X had been compromised. The unauthorized post on X claimed that the SEC had approved the trading of exchange-traded funds (ETFs) holding bitcoin, sending a wave of excitement through the cryptocurrency community. Bitcoin investors, who had been eagerly anticipating the approval of a bitcoin ETF, saw the price of the digital currency surge in response to the news.

The potential approval of a bitcoin ETF was significant because it would provide investors with a way to invest in bitcoin without having to directly purchase the cryptocurrency on popular exchanges like Binance or Coinbase. This development had been highly anticipated by many in the industry, including Cory Klippsten, the CEO of Swan Bitcoin, who expressed his excitement on X with a simple "Welp."

However, the joy was short-lived as SEC Chairman Gary Gensler took to his personal account to clarify that the agency's account had indeed been compromised. Gensler stated that the SEC had not approved the listing and trading of spot bitcoin exchange-traded products. This clarification caused the price of bitcoin to plummet from around $48,000 to approximately $45,200, leaving investors disappointed and uncertain about the future of cryptocurrency regulation.

The manner in which the SEC's social media accounts were compromised remains unclear. However, it was evident that the agency swiftly regained control over its account following Gensler's statement. The incident raised concerns among politicians, particularly Republicans who have long criticized Gensler's leadership of the SEC. They expressed anger at the agency's lax security controls over its accounts and demanded accountability.

Sen. Bill Hagerty, a Republican from Tennessee and member of the Senate Banking Committee, called for answers regarding the incident, comparing it to the level of scrutiny a public company would face in a similar situation. Hagerty emphasized the need for transparency and accountability from the SEC.

This incident is not the first time false market-moving information has caused volatility in the bitcoin market. In October, a false report suggested that BlackRock, a prominent fund manager, had obtained approval for a bitcoin ETF, resulting in a sharp increase in bitcoin prices.

As the news unfolded, a spokesman for X, the social media platform where the unauthorized post appeared, did not immediately respond to requests for comment. The platform's involvement in the incident remains unclear, leaving investors and industry experts searching for answers and hoping for increased security measures to prevent similar incidents in the future.