The U.S. Securities and Exchange Commission (SEC) has suffered a cybersecurity breach that saw a hacker compromise its account on the microblogging platform X. The attacker erroneously announced the approval of a spot Bitcoin exchange-traded fund (ETF).

Cryptocurrency custodian BitGo has been granted, in-principle, approval from the Monetary Authority of Singapore (MAS), to operate as a Major Payment Institution (MPI) in the region.

Popular cryptocurrency trading platform Bitfinex is removing the availability of its services for some of its UK customers in a bid to comply with local regulations.

Top stories in the Crypto Roundup today:

• SEC Hacked, Falsely Announces Bitcoin ETF Approval
• BitGo Gets Nod from Singapore Regulator to Operate as Major Payments Institution
• PayPal’s Stablecoin PYUSD Powers Third Largest Liquidity Pool on Curve
• Chart of the Week: BTC Open Interest on CME Reaches Record High

SEC Hacked, Falsely Announces Bitcoin ETF Approval

The U.S. Securities and Exchange Commission (SEC) has suffered a cybersecurity breach that saw a hacker compromise its account on the microblogging platform X. The attacker used the platform to erroneously announce the approval of a spot Bitcoin exchange-traded fund (ETF).

The security breach led to a temporary spike in the price of Bitcoin to a high near the $48,000 mark and triggered an investigation by US authorities into how the regulator was hacked.

Cryptocurrency enthusiasts, who often see the stance of SEC Chair Gary Gensler towards the sector detrimental, commented widely on the breach and pointed to the irony of a cyberattack hitting a regulator that often cautions about the online risks of cryptocurrencies.

The SEC has said it’s now collaborating with law enforcement to look into the incident, noting that the unauthorized access has been terminated and that the announcement of the spot Bitcoin ETF approval wasn’t made by the SEC. In a separate statement, Gensler noted no decision on ETFs has been made.

Elon Musk, CEO of X, confirmed that the SEC’s account was compromised and found that an “unidentified individual” managed to obtain control over a phone number associated with the regulator through a third party.

Per Musk, the SEC’s account wasn’t protected with two-factor authentication when it was compromised. The breach came a day ahead of today’s deadline for the regulator to decide on the ARK and 21 Shares spot Bitcoin ETF application. Some analysts believe the SEC will approve several spot Bitcoin ETFs at the same time.

BitGo Gets Nod from Singapore Regulator to Operate as Major Payments Institution

Cryptocurrency custodian BitGo has been granted in-principle approval from the Monetary Authority of Singapore (MAS), to operate as a Major Payment Institution (MPI) in the region.

The approval from the country’s central bank and financial regulator allows BitGo to operate while it awaits for the issuance of a full license. Once granted, the full license will enable BitGo to provide digital payment token services to its clients in the city-state.

Singapore has emerged as a hub for fintech and blockchain innovation as over a dozen firms, including prominent names like Coinbase, Crypto.com, and Ripple, have already obtained full MPI licenses.

Last week, BitGo was chosen by Hashdex as the custodian for the Bitcoin of its proposed spot Bitcoin ETF.

PayPal’s Stablecoin PYUSD Powers Third Largest Liquidity Pool on Curve

PayPal’s dollar-backed stablecoin PYUSD is gaining momentum in decentralized finance (DeFi), as it’s now being used on the third largest liquidity pool on the automated market maker (AMM) platform Curve.

The popular liquidity pool, known as FRAXPYUSD, has  over $135 million total value locked. The pool also uses Frax Finance's FRAX, an algorithmic stablecoin, and was launched on December 27.

A liquidity pool is a reserve of two or more cryptocurrencies in a smart contract and is used to provide liquidity for traders on decentralized exchanges like Curve, which specifically caters to stablecoins.

The FRAXPYUSD pool allows traders to convert their FRAX into PYUSD, which can then be used within the PayPal app for various transactions. Currently, the pool is predominantly FRAX, comprising over 80% of its total liquidity.

Chart of the Week: BTC Open Interest on CME Reaches Record High

Bitcoin’s open interest at the Chicago Mercantile Exchange (CME) has reached a record $5.75 billion, surpassing its October 2021 high, in a surge that reflects rising institutional demand.

Bitcoin’s funding rate has remained on positive territory even when open interest declines, signaling bullish market sentiment that is currently being influenced by expectations of a spot Bitcoin ETF approval.

State of the Crypto by Top Tier Exchange Volume

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