Coinbase Forces SEC to Pay for Gensler’s Missing Texts

Following the agency's acknowledgement of losing a significant batch of ex-Chair Gary Gensler's texts, Coinbase has resolved its FOIA dispute with the SEC for a $150,000 payout and changes to SEC record-keeping.

The missing messages apparently spanned October 2022 to September 2023 and vanished following a device reset and unsuccessful backup procedure. The settlement also compels the SEC to review its retention regulations and enhance official communications preservation.

The SEC lost documents during a time of rigorous crypto enforcement, but it enforces transparency regulations; this is the bigger narrative. Though this does not directly affect pricing for crypto markets, it reinforces the sector's argument that the agency's poor internal controls, matched with its crypto crackdown, added another credibility blow to the regulator.