SEC’s Transparency Under Fire as Gary Gensler’s Texts Mysteriously Vanish

Another day, another 'oops' moment in federal oversight—just as the SEC demands absolute transparency from crypto firms.

Vanishing Acts & Selective Memory

Texts from Chair Gensler's devices reportedly disappeared amid record preservation protocols. The same regulatory body that fines companies millions for incomplete documentation now can't locate its own communications. Classic government hypocrisy—rules for thee, but not for me.

Trust Issues Amplified

Market watchers raise eyebrows as the SEC's internal controls appear looser than a decentralized exchange's compliance department. When the top cop can't keep his own records straight, it undermines every enforcement action and guidance issued under his tenure.

The timing couldn't be worse—or more perfectly ironic. While pushing for unprecedented financial surveillance powers, the agency demonstrates it can't even handle basic data retention. Maybe they should hire a blockchain consultant.

Crypto leaders react

The crypto industry has reacted sharply to this report, noting that the missing messages span a critical period in market history.

Custodia Bank CEO Caitlin Long noted that the missing period coincided with some of the industry’s most turbulent events.

These included the collapse of FTX, the alleged Operation Chokepoint 2.0 campaign, Silvergate Bank’s liquidation, the Silicon Valley Bank run, and federal deposit insurance communications that rattled financial institutions.

Coinbase Chief Legal Officer Paul Grewal criticized the SEC for failing to uphold its own standards of transparency. Grewal argued that the deletion was not an innocent mistake but the destruction of records relevant to ongoing litigation.

He said:

“This isn’t some ‘oops’ moment. This was a destruction of evidence relevant to pending litigation. We all deserve better, especially from ‘leaders’ who see fit to smear others and cast aspersions so freely.”

Considering the severity of the situation, a Bitcoin investor, Wayne Vaughan, suggested that:

“Multiple private companies should be tasked with monitoring and backing up regulators’ communications. Each company should post a fidelity bond, forfeited if they fail to meet the required service standards. This can’t keep happening.”