US lawmakers urge SEC to fix cybersecurity after X account hack

In the wake of the recent cyberattack on X account, US lawmakers are actively urging the Securities and Exchange Commission (SEC) to take decisive action in fortifying cybersecurity measures. 

Someone briefly accessed its X, formerly called Twitter, account on which the agency had confirmed, and posted a fake message saying it had approved exchange traded funds (ETF) for bitcoin.

The SEC eventually approved the first U.S.-listed ETFs to track bitcoin on Wednesday, but the unauthorized post a day earlier led to a rise in the price of Bitcoin to around $48,000 before falling to below $45,000 minutes later.

The security breach, which targeted X account has prompted lawmakers to emphasize the urgency of addressing vulnerabilities within the financial sector. As the number of cyber threats continues to escalate, the SEC plays a pivotal role in safeguarding investors and maintaining the stability of the financial system.

Lawmakers argue that a robust cybersecurity framework is needed to prevent unauthourized access and protect against potential threats to the confidentiality, integrity, and availability of financial information. They stressed the importance of implementing proactive measures to detect and respond to cyber threats promptly.

One of the key issues highlighted by lawmakers is the need for companies to prioritize regular cybersecurity assessments and adopt best practices in safeguarding sensitive data. This includes implementing strong encryption protocols, multi-factor authentication, and regular employee training to enhance overall cybersecurity awareness.

The call for action extends beyond individual companies but a collaborative effort between the private sector and government agencies. Lawmakers are urging the SEC to work closely with financial institutions, regulatory bodies, and cybersecurity experts to develop comprehensive guidelines and standards.

Additionally, there is a growing consensus among lawmakers that increased transparency and disclosure requirements are necessary. Investors and the public should be informed promptly about any cybersecurity incidents, ensuring transparency in the financial industry and allowing stakeholders to make informed decisions.

The X account hack serves as a wake-up call, prompting the SEC to reevaluate and strengthen its cybersecurity regulations. By doing so, the regulatory body can proactively address emerging threats and establish a more resilient financial ecosystem.