Imagine a top regulator at the SEC, Gary Gensler back in the days, leading the charge on crypto crackdowns while a bunch of his text messages quietly disappear into the void.
That’s the story rocking Washington as House Republicans launch an inquiry into Gensler’s deleted texts from his tenure between 2021 and 2025.
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Unsecured IT-system
The drama started after the SEC’s Office of Inspector General dropped a report in early September revealing some eyebrow-raising facts.
It turns out, an unsecured IT system accidentally wiped clean Gensler’s government-issued phone, erasing texts between October 2022 and September 2023.
The OIG blamed a confusing auto-deletion policy, lousy backup planning, ignored alerts, and buggy vendor software for this digital vanishing act.
House Financial Services Committee Chair French Hill wasn’t having it. In a sharply worded letter to current SEC Chair Paul Atkins, Hill expressed serious doubts about the transparency and integrity of Gensler’s leadership.
The committee is now cozying up to the OIG, eager to dig deeper, clear up unanswered questions, and sniff out any additional shady business.
Puppet-master?
Now experts say these deleted texts could hold secrets about key SEC enforcement actions, including cases against crypto companies.
Why does that matter? Because many in the crypto world see Gensler as the puppet-master behind a supposed Biden administration plan to squeeze crypto firms by cozying up to banks and slapping lawsuits left and right. Some claim his heavy-handed tactics have throttled innovation and competition.
Republicans have an extra spicy allegation, Gensler’s SEC imposed strict punishments on private financial firms for widespread record-keeping failures, raking in over $400 million in fines during 2023 alone.
Yet, Gensler’s own agency apparently couldn’t meet the same standards, as demonstrated by the text message wipeout. Double standard, much?
Cover-up?
As if the deleted texts weren’t enough, the SEC also suffered a public embarrassment in January 2024, when hackers hijacked its official X account.
Oh, that was epic. They posted bogus news about the approval of spot Bitcoin exchange-traded funds, news so fake that SEC’s lack of two-factor authentication was blamed.
That’s the kind of security face-plant that keeps headlines lively.
To sum it up, House Republicans smell a cover-up and want answers before the SEC can sweep this under the rug.
Gary Gensler’s ghost texts might be the smoking gun in a larger story involving crypto enforcement and regulatory power plays.
Disclosure:This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Kriptoworld.com accepts no liability for any errors in the articles or for any financial loss resulting from incorrect information.
Cryptocurrency and Web3 expert, founder of Kriptoworld
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With years of experience covering the blockchain space, András delivers insightful reporting on DeFi, tokenization, altcoins, and crypto regulations shaping the digital economy.
📅 Published: October 2, 2025 • 🕓 Last updated: October 2, 2025
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