SEC’s Lost Text Messages Fuel Controversy over Crypto Regulation

Gary Gensler’s text messages, crucial for understanding SEC’s regulatory actions during his tenure as Chair, have vanished due to IT errors. The disappearance coincides with significant events in the crypto market like the FTX collapse and Operation Chokepoint 2.0, further raising concerns about transparency from regulators. This incident impacts public trust and raises questions about potential biases in enforcement practices. Industry experts are concerned that the SEC’s handling of this data loss could lead to a wider shift in regulatory policies regarding record-keeping and enforcement actions.