The issues surrounding the loss of text messages sent by SEC Chair Gary Gensler have raised concerns regarding the organization's transparency and data management.
Data Loss Issue
The problems began in September 2023 when Gensler noticed that some applications had disappeared from his government-issued smartphone. In response, OIT staff performed a factory reset on the device, permanently deleting its stored data. At the same time, the agency had been running an automated policy meant to disable texting on official devices. The result was that text records covering October 2022 through September 2023 were wiped.
Impact on Transparency
The loss of these communications may affect the SEC’s ability to respond to Freedom of Information Act (FOIA) requests, raising questions about transparency at the regulator. For an agency that plays a central role in overseeing both Wall Street and emerging crypto markets, the failure adds fuel to critics who have long accused the SEC of lacking accountability.
Inspector General's Recommendations
The Inspector General’s report did not assign personal blame but highlighted systemic shortcomings in the SEC’s mobile device and records management. It issued a series of recommendations to strengthen how the agency preserves official communications, including clearer protocols for disabling applications, better oversight of automated policies, and proper backup systems to prevent data loss in the future.
This incident underscores how technical missteps at key federal agencies can compromise record-keeping at the highest levels. While the missing text messages may never be recovered, the OIG report signals pressure on the SEC to ensure that similar lapses do not undermine public confidence again.
