🏛 House Republicans Probe SEC for Deleted Gensler Text Messages
The House Republicans have launched an inquiry into the disappearance of text messages belonging to former SEC Chair Gary Gensler. The investigation focuses on messages sent from 2021 to 2025 during Gensler’s tenure.
In a Tuesday letter to current SEC Chair Paul Atkins, House Financial Services Committee Chairman French Hill said the committee is coordinating with the SEC’s Office of Inspector General (OIG) to determine the circumstances behind the deletion and assess potential oversight gaps.
Hill wrote, “We are looking into the OIG report and trying to clarify any open questions and other areas.”
⚖️ Alleged Double Standards in Crypto Enforcement
Critics in the cryptocurrency sector have repeatedly alleged that during his tenure as SEC Chair, Gensler coerced banks into limiting services to crypto firms. Additionally, he has been involved in multiple lawsuits targeting entities in the sector.
House Republicans argue that the missing texts highlight a double standard: while the SEC fined several financial firms for record-keeping failures in 2023, collecting over $400 million, the agency itself failed to preserve its own communications.
The Republican-led letter, signed by ranking members Ann Wagner, Dan Meuser, and Bryan Steil, states that the former Chair held companies to a standard the SEC itself “did not meet.”
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🖥 SEC IT Blunders Behind the Data Loss
The SEC’s IT department activated a policy that wiped Gensler’s government-issued mobile phone, according to the OIG. An uninstalled upgrade deleted all messages sent from October 2022 through September 2023, and they were never recoverable.
The issue was compounded by poor change management, ignored system alerts, missing backup devices, and vendor software flaws. Some of the lost messages were related to SEC enforcement actions against crypto firms, potentially erasing key information about case strategies and coordination.
🔒 Security Gaps at the SEC
The SEC has faced scrutiny for cybersecurity vulnerabilities. In January 2024, a hacker compromised the SEC’s X account and falsely claimed approval of Bitcoin ETFs at spot prices. The SEC had not enabled two-factor authentication (2FA) for the account.
These missing messages, combined with cybersecurity lapses, have raised concerns about the SEC’s ability to effectively oversee and regulate the fast-evolving cryptocurrency industry.
