The U.S. Securities and Exchange Commission (SEC) has suffered a major data loss, wiping away nearly a year of text messages from former Chair Gary Gensler due to technical failures within its IT system. An investigation by the Office of Information Technology (OIT) and Office of Inspector General (OIG) revealed that inadequate oversight, missed alerts, lack of backups, and insufficient coordination contributed to this incident. This loss highlights serious concerns regarding recordkeeping practices during a pivotal period for crypto regulation as the SEC grapples with intensified scrutiny on the industry. While there were no immediate financial market repercussions from the data loss, the SEC is implementing new backup policies and has disabled government-issued texting devices to prevent future occurrences.