Republicans in the U.S. House of Representatives have launched an investigation into the disappearance of text messages from Gary Gensler, former head of the agency. These texts, deleted while he led the SEC, could contain sensitive exchanges related to prosecutions against the crypto industry.
In Brief
- •House Republicans investigate Gary Gensler’s deleted text messages, former SEC chairman, raising doubts about the agency’s transparency.
- •The OIG points to a technical and organizational failure, but lawmakers denounce a double standard applied by the SEC under Gensler.
- •Missing messages involved prosecutions against crypto companies, reinforcing criticism of a policy seen as hostile to the sector.
An Investigation Putting Pressure on the SEC
Republicans in the U.S. House of Representatives have opened an investigation into the disappearance of text messages sent by Gary Gensler, former chairman of the Securities and Exchange Commission. These texts, deleted while he served from 2021 to 2025, raise doubts about the transparency and integrity of the regulatory agency.
In a letter addressed to the current chairman of the SEC, Paul Atkins, the Financial Services Committee, led by French Hill, stated it is working closely with the Office of the Inspector General (OIG). They want to understand the exact circumstances of this deletion. Thus, they could determine whether internal practices contrary to requirements imposed on crypto firms took place.
Republicans accuse Gensler of applying double standards. Under his leadership, the SEC imposed over $400 million in fines on crypto financial firms in 2023. These companies were accused of violations related to recordkeeping and retaining internal communications. Yet, these same obligations allegedly were not met by the agency itself.
The loss of Gensler’s texts, some of which directly concerned SEC actions against crypto companies, fuels industry criticism. Many see it as proof of a hostile policy orchestrated under the Biden administration. Indeed, they appeared intent on limiting crypto firms’ access to the banking system and slowing their growth with a flood of prosecutions.
A Technological Failure or a Governance Problem?
According to the OIG, the deletion officially results from an automated policy misunderstood by the SEC’s IT department. The erasure of Gensler’s phone was worsened by a lack of backups, ignored alerts, and uncorrected software bugs.
However, the timing raises questions. Indeed, several deleted messages involved sensitive cases, notably investigations against crypto project founders.
Beyond tensions with the cryptocurrency industry, this case illustrates a larger issue. It concerns the very credibility of the SEC. If the agency tasked with enforcing financial transparency loses track of its own communications, public and market trust suffers. For Republicans, the investigation is just beginning, and it could reshape the perception of Gary Gensler’s mandate.
Furthermore, this is not the first time the SEC has faced criticism for its information management. In January 2024, a hacker took control of its X account. It posted a fake announcement about the approval of a Bitcoin spot ETF. The incident had already highlighted security flaws in an agency supposed to embody rigor and reliability.