US SEC Under Fire As Coinbase Flags Missing Gensler Crypto Texts in Watchdog Report

Key Insights:

• Missing Gary Gensler crypto texts from 2023 are now central to Coinbase case against the US SEC.
• The watchdog report says Gensler’s phone reset wiped nearly a year of messages, with 40% work-related.
• The timing, near FTX’s collapse and big SEC cases, makes crypto traders suspect a possible cover-up.

The U.S. Securities and Exchange Commission (SEC) is under pressure again. This time, it’s not for suing crypto companies. Instead, questions are rising about missing messages from the former US SEC Chair, Gary Gensler.

A new watchdog report shows that Gensler’s government phone allegedly lost nearly a year of texts in 2023. These missing “Gensler crypto texts” are now at the center of a court fight.

Coinbase, one of the largest U.S. crypto exchanges, says the SEC is hiding important records.

Why Gary Gensler’s Crypto Texts Matter Now for Coinbase Case?

Gary Gensler was the 33rd Chair of the SEC under the Biden administration.

He took charge in 2021. Before that, he worked at Goldman Sachs and taught at MIT. His role at the US SEC was powerful because he decided how crypto should be policed in the U.S.

Because the SEC has been tough on crypto, Gensler’s crypto texts are key.

They may have shown how he and his staff discussed Ethereum, Coinbase, FTX, and other big crypto issues. If those texts are gone, it presumably means that part of history has been deleted from existence.

Coinbase CLO Highlights the Issue on X

Paul Grewal, the Chief Legal Officer (CLO) of Coinbase, made this issue public.

He shared the watchdog report online. His point was simple: the SEC holds others to high standards, but its own boss allegedly lost key messages.

Coinbase is already fighting the SEC in court.

The case started when Coinbase asked for records under the Freedom of Information Act (FOIA).

FOIA is a law that lets the public request government files. Coinbase wanted to see internal SEC notes about crypto. The SEC gave some files, but no texts.

Now we know why; the Gensler crypto texts were allegedly gone.

Why is Coinbase Raising Questions?

The SEC’s own Inspector General, who acts like an in-house referee, wrote the report. It said Gensler’s government phone was reset in September 2023. That reset wiped out almost a year of texts.

Later, about 1,500 messages were recovered. Nearly 40% of them were tied to US SEC work. Some may have included talks about crypto rules or lawsuits. The report also warned that records from 21 other SEC phones might be missing, too.

The timing makes people even more suspicious. Coinbase had already asked for SEC records in mid-2023 under FOIA, a law that lets the public request government files.

The phone reset happened soon after, in September 2023. Then, in early 2025, the SEC told a court it had “finished searching” for records — but that search didn’t cover the missing texts.

When the watchdog report became public in September 2025, Coinbase’s lawyer said the truth was finally out. For many in crypto, the chain of events looks like a cover-up of the missing Gary Gensler crypto texts.

What Could All This Mean From the Crypto PoV?

This issue matters because in 2022 and 2023, the SEC had to decide a big question: should Ethereum be seen as a security, like a stock, or as a commodity, like gold?

The missing Gensler crypto texts might have shown what he and his team really thought at the time.

The timing makes it even more important. The phone reset happened in September 2023, less than a year after the collapse of FTX shook the whole crypto market.

That same period also brought lawsuits against other major crypto companies and talks about new rules.

If those texts had included chats about FTX or other sudden shocks, they might have revealed how the US SEC reacted behind closed doors.

The texts could have also shown what the SEC’s view was on other crypto events.

It might have also revealed the SEC’s stance or approach on other crypto events, including the following:

Coinbase says this is unfair. Crypto firms must keep every email and chat log. But the SEC may have lost its own records. To many traders, that feels like a double standard.

History Associates, working for Coinbase, is asking a court to act quickly. They want the SEC to search again, even for deleted texts, and to face penalties if rules were broken.

For now, the missing “Gensler crypto texts” remain a mystery. But with Coinbase pushing and the watchdog report now public, the issue is not going away. It leaves one big question: how can the SEC enforce trust in crypto markets if it cannot keep its own records?