Genslers – Earlybirds Invest

https://earlybirdsinvest.com Latest Crypto News Fri, 12 Sep 2025 18:24:43 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.9 https://i0.wp.com/earlybirdsinvest.com/wp-content/uploads/2024/12/cropped-New-Project-2024-12-17T235703.455.png?fit=32%2C32&ssl=1 Genslers – Earlybirds Invest https://earlybirdsinvest.com 32 32 240146708 Coinbase Seeks Sanctions After SEC Wipes Gary Gensler’s Text Messages https://earlybirdsinvest.com/coinbase-seeks-sanctions-after-sec-wipes-gary-genslers-text-messages/ https://earlybirdsinvest.com/coinbase-seeks-sanctions-after-sec-wipes-gary-genslers-text-messages/#respond Fri, 12 Sep 2025 18:24:43 +0000 https://earlybirdsinvest.com/coinbase-seeks-sanctions-after-sec-wipes-gary-genslers-text-messages/

The US Securities and Exchange Commission (SEC) is facing criticism after an internal review showed that former Chair Gary Gensler’s text messages were erased between October 2022 and September 2023.

The Inspector General confirmed the records were permanently deleted, which raises concerns about how the agency manages and preserves important communications.

According to the SEC, it uses a system that wipes government-issued devices if they remain disconnected from the network for more than 45 days.

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In response, Coinbase

$2.33B

has asked a federal court in Washington, DC, to issue sanctions against the SEC, require faster discovery, and order the release of all remaining records.

In its filing, Coinbase said the destruction has caused harm that cannot be fixed and urged the court to halt a “destroy-and-delay” approach.

The company also pointed to the Freedom of Information Act disputes. The SEC first blocked Coinbase’s requests by claiming exemptions tied to law enforcement. That stance changed after Coinbase sued in June 2024.

Coinbase stated that the SEC could have processed or at least protected the records in 2023 if it had carried out timely searches.

Chief Legal Officer Paul Grewal stated in a post on X that the SEC “destroyed documents they were required to preserve and produce”, and pointed to the Inspector General’s findings as proof.

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Meanwhile, a group of international regulators and exchange associations recently asked the SEC to take a stance on tokenized stocks. What did they say? Read the full story.

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Gary Gensler’s SEC Phone Wiped, Nearly a Year of Texts Gone https://earlybirdsinvest.com/gary-genslers-sec-phone-wiped-nearly-a-year-of-texts-gone/ https://earlybirdsinvest.com/gary-genslers-sec-phone-wiped-nearly-a-year-of-texts-gone/#respond Sat, 06 Sep 2025 09:39:45 +0000 https://earlybirdsinvest.com/gary-genslers-sec-phone-wiped-nearly-a-year-of-texts-gone/

An internal review has revealed that nearly a year’s worth of text messages from former Securities and Exchange Commission (SEC) Chair Gary Gensler were deleted.

The Office of the Inspector General, which acts as an independent reviewer for the SEC, explained on September 3 that the messages were lost due to a combination of technical problems, overlooked warnings, and a misapplied policy.

The issue began on July 6, 2023, when Gensler’s work phone stopped linking properly with the SEC’s device management system. While the phone was still working and in use, its status was shown as “inactive” to the IT team, an alert that went unnoticed.

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On August 10, 2023, the agency’s tech department announced that any phone not connected to the system for 45 days would be automatically wiped. Gensler’s phone met that condition and was cleared without any manual checks.

Then, on September 6, 2023, Gensler returned to the SEC offices and saw that certain apps were missing. Unaware that the phone had already been wiped, the support team tried to fix the issue.

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However, instead of restoring the content, they reset the phone entirely, which erased any remaining data, including text messages from October 18, 2022, to September 6, 2023.

The report pointed to several other issues that contributed to the loss, including a lack of communication between IT teams and external service providers.

Meanwhile, SEC Chair Paul Atkins recently shared his views on how the agency plans to handle digital assets going forward. What did he say? Read the full story.

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‘Avoidable errors’ wiped a year’s worth of Gary Gensler’s texts… oops https://earlybirdsinvest.com/avoidable-errors-wiped-a-years-worth-of-gary-genslers-texts-oops/ https://earlybirdsinvest.com/avoidable-errors-wiped-a-years-worth-of-gary-genslers-texts-oops/#respond Fri, 05 Sep 2025 03:45:29 +0000 https://earlybirdsinvest.com/avoidable-errors-wiped-a-years-worth-of-gary-genslers-texts-oops/

A Securities and Exchange Commission investigation into missing text messages from former chair Gary Gensler’s phone between October 2022 and September 2023 has concluded that “avoidable errors” led to their loss.

The SEC Office of Inspector General (OIG) investigated how nearly a year’s worth of text messages from Gary Gensler were permanently lost between October 2022 and September 2023, during the height of the agency’s crypto enforcement action campaign.

In a report released on Wednesday, the OIG revealed that the SEC’s IT department “implemented a poorly understood and automated policy that caused an enterprise wipe of Gensler’s government-issued mobile device,” which deleted stored text messages and operating system logs.

The loss was worsened by poor change management, lack of proper backups, ignored system alerts and unaddressed vendor software flaws.

The IT department failed to collect or maintain necessary log data, which is why the commission could not determine why Gensler’s smartphone stopped communicating with the SEC’s mobile device management system.

*Timeline of events leading to the loss of Gensler’s text messages. Source: SEC*

Key communications about crypto enforcement actions were lost

The OIG found that some of Gensler’s deleted texts involved SEC enforcement actions against crypto companies and their founders, meaning that key communications about how and when the SEC pursued cases may never be fully known, even to courts, Congress or the public.

Related: Judge has ‘strong views’ about Coinbase inquiry into Gensler’s private msgs

Investigators reviewed about 1,500 messages recovered from colleagues and other records. They determined that the majority were federal records, with around 38% of the recovered text conversations “mission related” concerning matters directly involving SEC senior staff at the time, such as:

“A May 2023 conversation involving Gensler, his staff, and the Director of the Division of Enforcement about when the SEC would be filing an action against certain crypto asset trading platforms and their founder.”

LATEST: The SEC’s Inspector General released a report on the loss of text messages from former Chair Gary Gensler due to avoidable errors by the agency’s IT office between October 2022 and September 2023. pic.twitter.com/3iWixftGKR

— Cointelegraph (@Cointelegraph) September 5, 2025

SEC crackdown on recordkeeping

Around the same time that Gensler’s messages were disappearing into a black hole, the SEC cracked down on the use of messaging apps. Several global investment banking and financial institutions were charged with violating record-keeping and books-and-records laws under the 1934 Securities and Exchange Act.

“Finance, ultimately, depends on trust. By failing to honor their recordkeeping and books-and-records obligations, the market participants we have charged today have failed to maintain that trust,” said Gensler at the time.

Undermining transparency in crypto decisions

The SEC has since disabled text messaging on most devices, notified the National Archives and Records Administration of lost records, introduced Capstone-specific records training for senior officials, and started improving backup practices for senior officials’ devices.

“The loss of Gensler’s text messages may impact the SEC’s response to certain Freedom of Information Act requests,” it stated.

Gensler, who stepped down in January, was infamous in the crypto community for his bait-and-switch offer to “come in and get registered,” which pre-empted multiple SEC actions against companies that claimed they tried to do exactly that. Enforcement actions against crypto companies reached a 10-year high in 2023.

“Think about everything that happened in crypto during this time. Basically, FTX collapse through the Grayscale spot BTC ETF lawsuit,” observed NovaDius Wealth Management President Nate Geraci, who added“makes you think.”

“So Gary Gensler’s text messages from his tenure as SEC chairman are forever lost in a mysterious ‘boating accident’ ???,” quipped Custodia Bank founder Caitlin Long.

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SEC Crypto Task Force live-streaming roundtable to find ‘solution’ to Gensler’s legacy https://earlybirdsinvest.com/sec-crypto-task-force-live-streaming-roundtable-to-find-solution-to-genslers-legacy/ https://earlybirdsinvest.com/sec-crypto-task-force-live-streaming-roundtable-to-find-solution-to-genslers-legacy/#respond Tue, 04 Mar 2025 08:42:49 +0000 https://earlybirdsinvest.com/sec-crypto-task-force-live-streaming-roundtable-to-find-solution-to-genslers-legacy/

The US SEC announced Monday that its Crypto Task Force will host a series of roundtables addressing key regulatory areas for digital assets. The inaugural session, focused on defining security status, will take place on March 21.

The first event in the “Spring Sprint Toward Crypto Clarity” series will be open to the public from 1:00 P.M. to 5:00 P.M. at SEC headquarters in Washington, D.C. The session will be streamed live on SEC.gov, and a recording will be posted later. Attendees can also participate in unbroadcast small group breakout discussions.

“I am looking forward to drawing on the expertise of the public in developing a workable regulatory framework for crypto,” said Commissioner Hester M. Peirce, who leads the task force. “The roundtables are an important part of our engagement with the public.”

Acting SEC Chairman Mark T. Uyeda launched the Crypto Task Force on January 21 to establish clear regulatory lines, provide realistic paths to registration, craft sensible disclosure frameworks, and deploy enforcement resources judiciously.

This marks the start of the significant policy shift in the SEC’s approach to crypto regulation promised by President Trump. The task force aims to provide clarity on applying federal securities laws to the crypto market while recommending practical policy measures that balance innovation with investor protection.

Commissioner Peirce simultaneously announced the task force’s staff members, bringing together expertise across the Commission. The team includes Richard Gabbert as Chief of Staff, Michael Selig as Chief Counsel, and Taylor Asher as Chief Policy Advisor, alongside eleven senior advisors with diverse regulatory backgrounds.

“The Crypto Task Force exhibits deep expertise and an enthusiastic commitment to identifying—with the help of other talented staff across the Commission and interested members of the public—workable solutions to difficult crypto regulatory problems,” Peirce stated.

Several key appointees bring notable industry experience to the initiative. Michael Selig previously advised clients on securities compliance for crypto exchanges and stablecoin operators at Willkie Farr & Gallagher’s Digital Works practice. Landon Zinda, now a Senior Advisor, formerly served as Policy Director at crypto advocacy group Coin Center.

The task force’s composition reflects a deliberate balance between regulatory rigor and industry pragmatism, contrasting with the SEC’s recent enforcement-heavy approach that resulted in significant fines throughout 2024.

The March 21 roundtable, “How We Got Here and How We Get Out—Defining Security Status,” addresses one of the most contentious issues in crypto regulation: determining when digital assets constitute securities subject to SEC oversight. This fundamental question has been central to numerous enforcement actions and legal challenges in recent years.

Members of the public can communicate directly with the task force and request meetings through the SEC’s dedicated portal. The Commission will post additional information regarding the roundtable agenda and speakers on the Crypto Task Force webpage in the coming days.

The task force will coordinate with relevant government regulators to clearly define securities and non-securities in the crypto space.

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