The US Securities and Exchange Commission (SEC) is facing criticism after an internal review showed that former Chair Gary Gensler’s text messages were erased between October 2022 and September 2023.
The Inspector General confirmed the records were permanently deleted, which raises concerns about how the agency manages and preserves important communications.
According to the SEC, it uses a system that wipes government-issued devices if they remain disconnected from the network for more than 45 days.
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In response, Coinbase
$2.16B
In its filing, Coinbase said the destruction has caused harm that cannot be fixed and urged the court to halt a “destroy-and-delay” approach.
The company also pointed to the Freedom of Information Act disputes. The SEC first blocked Coinbase’s requests by claiming exemptions tied to law enforcement. That stance changed after Coinbase sued in June 2024.
Coinbase stated that the SEC could have processed or at least protected the records in 2023 if it had carried out timely searches.
Chief Legal Officer Paul Grewal stated in a post on X that the SEC “destroyed documents they were required to preserve and produce”, and pointed to the Inspector General’s findings as proof.
Meanwhile, a group of international regulators and exchange associations recently asked the SEC to take a stance on tokenized stocks. What did they say? Read the full story.
