2025-02-27
On Feb 24, 2025, the U.S. Securities
and Exchange Commission (SEC) has closed its investigation into the
cryptocurrency exchange Gemini without taking any action.
This decision is part of a trend where
the SEC has recently dropped cases against other crypto companies.
On February 26, Gemini co-founder
Cameron Winklevoss shared that the SEC had ended its investigation.
The SEC had previously accused Gemini
and Genesis Global Capital of offering unregistered securities through Gemini’s
"Earn" program in January 2023.
While the investigation is closed for
now, the SEC clarified that this does not mean they won’t take action in the
future.
Winklevoss welcomed the news but said
it doesn’t undo the damage caused by the SEC’s actions.
He claimed that Gemini spent tens of
millions of dollars on legal fees. The broader crypto industry lost hundreds of
millions in productivity, creativity, and innovation. Many engineers and
entrepreneurs may have avoided working in crypto due to regulatory uncertainty.
The SEC recently ended cases against
Coinbase, OpenSea, Robinhood Crypto, and Uniswap Labs.
These cases were part of the SEC’s
strict enforcement against crypto companies, led by former SEC Chair Gary
Gensler, who resigned in January 2025.
Winklevoss believes the crypto industry
needs better protection from regulatory overreach.
He suggested:
Reimbursement – If the SEC opens an
investigation without clear rules, they should pay back companies’ legal costs.
Accountability – SEC staff responsible
for unfair actions should be publicly fired.
Banning Bad Actors – Officials who
misuse their power should be barred from working in government agencies again.
He warned that unless these steps are
taken, similar regulatory actions could happen again, affecting not just crypto
but other emerging industries.
Despite everything, Winklevoss said he
remains hopeful that the crypto industry can move forward and create a fairer
system for the future.
