Crypto leaders decry SEC mishap over spot bitcoin ETF news: 'Biting my tongue so hard it's bleeding'

The collective cryptocurrency industry was thrown for a major loop on Tuesday after the Securities and Exchange Commission had to say that spot bitcoin ETFs had not yet been approved despite an unauthorized tweet that had been posted on its X account that said otherwise. 

In the aftermath, crypto executives and analysts took took to X on Tuesday to air out their grievances. 

"Today, the @SECGov continued its quest to harm US investors. Time for the SEC to hold the SEC accountable!" said Tyler Winklevoss on X, adding, "I expect @SECGov Enforcement to send the SEC’s Social Media and Cybersecurity teams a Wells Notice any minute."

Ripple CEO Brad Garlinghouse, who was sued by the SEC in 2020, said the agency should even investigate itself.

"Days like this remind me that 1/ the SEC should be investigating itself for multiple things 2/ crypto Twitter remains undefeated in memes," Garlinghouse posted on X. 

MicroStrategy co-founder Michael Saylor added that "Bitcoin will be the only thing ever approved twice by the @SECGov."

'Biting my tongue'

Coinbase Chief Legal Officer Paul Grewal posted that he was "biting my tongue so hard it's bleeding…" Coinbase has been ensnared in a legal battle with the SEC since last year calling for clarity on how the agency's rules apply to crypto and its custody service is the main provider for multiple spot bitcoin ETF applications.

Some said this was the biggest event in the entire process of getting a spot bitcoin ETF out the gate. "Out of the entire 10+yr spot bitcoin ETF saga...This has to be, by far, the most twisted plot twist. Quentin Tarantino-esque," noted Nate Geraci, president of The ETF Store.

Anthony Scaramucci, former White House communications director and now founding and managing partner at SkyBridge Capital said he cast doubt on the idea that the account was actually hacked, suggesting it might have been a real post that went out early. Others cast doubt on this idea claiming it was unlikely for the SEC to use the bitcoin hashtag in an official post of this magnitude.

Others drudged up old posts from the SEC including one that said in October — "Careful what you read on the internet. The best source of information about the SEC is the SEC."

Gensler's previous "reminder to secure your financial accounts as well as protect against identity theft and fraud," also picked up traction.