bullish

SEC clears Gemini; Winklevoss sees crypto victory

Gemini co-founder Cameron Winklevoss announced the SEC has closed their investigation with no action taken, marking progress in ending the crypto war. Though relieved, he believes the damage may have already been done.

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The SEC Concludes Investigation into Gemini Crypto Exchange

In recent developments, the United States Securities and Exchange Commission (SEC) has officially closed its investigation into Gemini, a prominent cryptocurrency exchange. This decision adds Gemini to a growing list of firms that have temporarily avoided the SEC's scrutiny.

Details of the SEC Investigation Closure

On February 26, Gemini co-founder and president Cameron Winklevoss shared a notice confirming the conclusion of the SEC's investigation. The SEC stated that based on the information available at the time, no enforcement action would be recommended against Gemini.

  • The SEC charged Genesis Global Capital and Gemini for offering unregistered securities through Gemini's "Earn" program on January 12, 2023.
  • Although the investigation closure is not an exoneration, it does not guarantee immunity from future actions based on the investigation's findings.

Response and Impact on Gemini

Cameron Winklevoss expressed mixed feelings about the investigation's closure, citing significant financial and productivity losses incurred during the regulatory process. He emphasized that the SEC's actions have had detrimental effects on Gemini and the broader crypto industry.

Broader Regulatory Landscape

The SEC's decision regarding Gemini follows similar actions involving other crypto entities. Notably, cases against Coinbase, OpenSea, Uniswap Labs, and Robinhood Crypto have been resolved recently, signaling a potential shift in the regulatory approach to the crypto sector.

Call for Regulatory Reforms

Winklevoss highlighted the need for thoughtful legislation and accountability mechanisms to prevent unfounded investigations and enforcement actions by regulatory agencies. He proposed consequences for staff involved in unwarranted actions and reimbursement for affected crypto firms to mitigate the impact of regulatory overreach.

Transition in SEC Leadership

Former SEC Chair Gary Gensler, known for his stringent regulatory stance on crypto, resigned in January 2025. During his tenure, the SEC pursued numerous regulatory actions against crypto firms, which have sparked debates on the appropriate balance between regulation and innovation in the crypto space.