Coinbase has filed a motion in federal court seeking an expedited investigation into the deleted messages from former SEC Chair Gary Gensler. The request follows revelations that the SEC lost nearly a year’s worth of his communications, complicating the analysis of his record during his leadership.
Coinbase's Statement on Investigation
Coinbase has requested an "expedited proper search" for deleted text messages from Gary Gensler. This comes in light of a report from the Inspector General dated September 3, which noted that the SEC "excluded officials' text messages when processing FOIA requests."
Issues Accessing SEC's Records
The report revealed that nearly a year of Gensler's text messages were lost due to avoidable IT and record-keeping missteps, including a factory reset prior to backup. These events coincided with the collapse of FTX and increased SEC enforcement actions against crypto exchanges, including Coinbase.
SEC's Changing Stance After Gensler's Exit
After Gensler's resignation, prompted by the Trump administration, the SEC's stance towards digital assets shifted. The agency dropped several high-profile lawsuits against crypto companies and initiated the 'Project Crypto' to modernize regulations in the sector.
The situation surrounding the loss of Gary Gensler's messages raises concerns about the SEC's adherence to record-keeping standards. Coinbase continues to advocate for transparency and fairness in its dealings with the cryptocurrency frameworks.
