In an odd turn of events, San Fransisco-based crypto exchange, Coinbase has proposed a joint cybersecurity effort with the United States Securities and Exchange Commission (SEC) following an account breach.
Coinbase To Assist SEC With Cybersecurity
On Tuesday, January 9, the cryptocurrency market was shaken up by an unexpected post from the official X (formerly Twitter) account of the US regulator. The post claimed that the agency had approved all Bitcoin Spot Exchange-Traded Funds (ETFs).
However, the regulatory watchdog later announced that the SEC’s X account had experienced a hack. This ultimately allowed the hackers to share false information on the approval of Bitcoin Spot Exchange-Traded Funds (ETFs).
In response to the bizarre development, Coinbase reached out to the SEC, while offering its assistance with cybersecurity matters. Coinbase Chief Security Officer (CSO) Phillip Martin initially noted the firm’s willingness to assist the SEC on X.
The news has since caused quite a stir in the community because Coinbase is presently involved in a legal dispute with the SEC. The regulator had filed a lawsuit against the exchange in June last year for running an unlicensed securities exchange.
According to the security officer, the offer is a serious one. Martin believes the firm is capable of helping the SEC because of its years of “experience with security protocols around social media.”
Martin also noted that another reason for the offer is the exchange’s love for its country. “And as a veteran and patriot, I love to help my country. If you would like any suggestions feel free to reach out,” he stated.
Furthermore, Coinbase Chief Legal Officer (CLO) Paul Grewal has pointed out that every member of the team is in line with the offer. He further highlighted the team’s commitment to providing “fair, orderly, and efficient markets for all Americans.”
So far, United States attorney Jeremy Hogan has expressed his displeasure with the offer from Coinbase. The attorney asserted that the firm is “cold like dry ice,” for suggesting such an offer.
Continued Optimism On ETF Approval
The recent development may have raised uncertainty within the crypto community, causing investors to wonder what would happen to the much-anticipated ETFs. But despite the uncertainty, many investors and analysts are still hopeful that the SEC will soon approve the Bitcoin ETFs.
The community and industry players have been pressuring the agency to do so, and multiple applications are presently being reviewed by the agency. The approval would allow individuals and investors to gain exposure to Bitcoin without purchasing the actual asset.
Nevertheless, this security incident highlights the high level of expectation encompassing the SEC’s upcoming decision.
Featured image from Shutterstock, chart from Tradingview.com
