- The SEC has closed its investigation into Gemini, opting not to pursue enforcement action.
- Cameron Winklevoss criticized the SEC’s actions, citing high legal costs and regulatory uncertainty.
- Recently, the SEC dropped cases against Coinbase, Uniswap, OpenSea, and Robinhood.
The Gemini Trust Company has received closure on its long-running battle with the SEC. The agency has decided not to pursue enforcement action against the crypto exchange. Cameron Winklevoss, co-founder of Gemini, announced the news in a post on X. Sharing an official letter from the SEC, dated February 24, he confirmed the conclusion of the investigation.
The SEC began investigating Gemini 699 days ago, during which the crypto exchange spent millions on legal fees. According to Winklevoss twins, the SEC issued a Wells Notice to Gemini which appeared as a potential legal action 277 days ago. Despite this warning, the agency ultimately dropped the case without the letter explaining what sort of investigation had taken place.
Following this, Winklevoss criticized the SEC for imposing heavy costs on the industry without clear regulations. He claimed that the agency’s actions hindered innovation and drove talented engineers away from crypto. He also argued that the SEC’s recent reversals highlight flaws in its approach.
The crypto industry is not new to the enforcement actions imposed by the SEC, however, the recent actions of the agency have raised eyebrows. Over the last two weeks, the SEC has dropped charges against several firms including Coinbase, Uniswap, Robinhood, OpenSea, and now Gemini. The shift follows increasing pressure on regulators to adopt a clearer stance on crypto.
Related: Gemini Gets Malta Approval for EU Crypto Derivatives Expansion
Winklevoss believes the SEC should face consequences for its actions. He proposed reforms, including reimbursing legal costs for firms targeted without clear rules. He also suggested dismissing officials responsible for failed enforcement attempts. Additionally, he called for a lifetime ban on regulators who misuse their power.
The billionaire pointed out the broader impact of the SEC’s crackdown. He argued that it delayed crypto development and discouraged new startups. Many projects struggled under regulatory uncertainty, leading to lost economic opportunities. He warned that without accountability, similar actions could continue in the future.
The SEC has not commented on its decision, and Gemini has also not provided further details on the case. However, the exchange is moving forward after nearly two years of regulatory uncertainty.
