Rep. Tom Emmer of the United States has turned to Twitter to criticize the head of the Securities and Exchange Commission, Gary Gensler, for charging Gemini and Genesis too late. The politician stated:
“Gary Gensler is once again late to the game, ‘protecting’ no one. Quite clear that his political ‘regulation through enforcement’ strategy hurts everyday Americans.”
After that, he continued to question Gensler when the public may expect proactive advice instead of leaving it up to the industry to interpret the rules of the road via Gensler’s “after-the-fact” enforcement measures.
In a complaint that was filed late on Thursday night, the United States Securities and Exchange Commission (SEC) claimed that the cryptocurrency exchange Gemini and the cryptocurrency lender Genesis Global Capital offered unregistered securities.
Gemini Earn, a troublesome yield-bearing service that a large number of investors in the United States entrusted with their cryptocurrency, came under fire from the regulatory body that oversees investments. By lending deposits to Genesis, which then lent them out again to other customers, Gemini was able to create income on billions of dollars worth of cryptocurrency.
According to the complaint, the defendants participated in the Gemini Earn Program and marketed and sold Gemini Earn Agreements without first registering with the relevant securities authorities.
The SEC pointed out that once Genesis stopped allowing loan withdrawals in November, over 340,000 Gemini Earn users and approximately $900 million worth of cryptocurrency were left in limbo.
As a consequence of this, investors did not have access to vital information regarding the Gemini Earn program, which prevented them from making investment choices that would have been beneficial to them.