A recent watchdog report has revealed that former Securities and Exchange Commission (SEC) Chairman Gary Gensler erased all text messages from his government-issued phone for the 2022–2023 period, raising questions about transparency during a critical era of financial regulation. The disappearance of these records coincides with the collapse of FTX and ongoing investigations into potential systemic misconduct in Washington.

The SEC Office of the Inspector General found that Gensler’s phone underwent a factory reset in September 2023, wiping nearly a year’s worth of messages. This occurred despite the agency’s aggressive stance against financial institutions for deleting “off-channel” communications, which led to over $2 billion in penalties. The reset was attributed to technical issues: Gensler’s device had not communicated with the mobile device management system for 62 days, triggering an automatic wipe under a policy implemented that summer.

SEC staff returned the phone to a vendor before recovering any data, according to the report. While some messages from other employees were salvaged, the full scope of missing communications remains unknown. A SEC spokesperson emphasized the agency’s commitment to transparency but did not address Gensler’s actions directly.

Gensler, who resigned in January 2025, has faced criticism for his handling of crypto regulation and alleged conflicts of interest. His successor, Paul Atkins, nominated by President Donald Trump, is set to begin Senate confirmation hearings on March 27, 2025. Atkins, a pro-crypto advocate, disclosed $327 million in assets, including $6 million in crypto-related investments, though he has pledged to divest these holdings upon assuming the role.

The transition marks a shift in regulatory priorities, as the SEC moves away from Gensler’s enforcement-heavy approach. Meanwhile, questions persist about the integrity of records and the accountability of those in power.