Michaela
U.S. House Republicans have opened an inquiry into missing text messages from former SEC Chair Gary Gensler, notifying current U.S. Securities and Exchange Commission (SEC) Chair Paul Atkins that they are seeking answers on how text messages from Gensler’s tenure were lost.
Key points:
- House Republicans are investigating nearly a year of missing text messages from former SEC Chair Gary Gensler after an OIG report revealed their loss.
- The messages were permanently erased after OIT staff performed a factory reset on Gensler’s phone, which had not been backed up since October 2022.
- Lawmakers raised concerns about inconsistent IT policies and possible preferential treatment, citing risks to transparency, oversight, and federal recordkeeping laws.
In a letter to SEC Chair Atkins, House Financial Services Committee Chairman French Hill and Ranking Members Ann Wagner, Dan Meuser, and Bryan Steil pointed to findings from the agency’s Office of Inspector General (OIG). The report revealed that close to a full year of text messages from Gensler had been erased. “The report raises concerns regarding the SEC’s treatment of information technology (IT), particularly as it relates to its most senior officials,” the letter wrote.
The report stated that Gensler’s smartphone ceased syncing with the SEC’s mobile device management system on July 6, 2023. Although the device was said to be operating normally and in regular use beforehand, the system flagged it as “inactive” for a span of 62 days.
The issue was reportedly flagged multiple times, yet the SEC’s Office of Information Technology (OIT) took no steps to investigate or resolve it. Then, on August 10, 2023, the OIT introduced a new policy requiring any SEC-issued mobile device that failed to connect to the management system for 45 days to be remotely wiped.
Additionally, the lawmakers expressed concern that the OIT may have adopted a policy that was “poorly understood” and inconsistently applied. They pointed out that the former SEC Chair’s phone was not wiped until September 6, 2023, over two weeks later than the policy would have required, raising questions about whether he received preferential treatment.
The report noted that although Gensler’s smartphone had been wiped, his data could still have been preserved. Instead, OIT staff performed a full factory reset, permanently erasing the device’s contents, including nearly a year of text messages. The loss was compounded by the fact that the device had not been backed up since October 18, 2022, leaving no recovery option for the missing records.
After forensic attempts to recover Gensler’s lost texts failed, the OIT reviewed phone records to identify likely contacts. They compiled a list of 34 agency employees Gensler was believed to text most often, though the former SEC chair did not contribute to the list, and fellow commissioners were initially excluded. While staff claimed his texts were mostly administrative, the OIG found several exchanges contained substantive, mission-related communications.
“Collectively, these incidents, along with the OIG’s findings, raise serious concerns about former Chair Gensler’s and OIT’s compliance with federal recordkeeping laws, transparency obligations, and the integrity of agency oversight,” the letter wrote. “The Committee is engaging with the OIG to learn more about their report, seek clarity on outstanding questions, and discuss additional areas that require further oversight and investigation,” it added.
The former SEC Chair resigned after a turbulent tenure marked by lawsuits, delayed ETF approvals, and criticism of “regulation by enforcement.” Crypto firms argued his approach fueled uncertainty and pushed innovation abroad, while courts overturned some SEC actions. Gensler defended his focus on investor protection, but his clashes with the industry left lasting divides. His exit now raises hopes for clearer rules and broader approval of digital asset products.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
