The U.S. Securities and Exchange Commission (SEC) has closed its investigation into crypto exchange Gemini, marking another instance of a crypto firm escaping regulatory scrutiny for now. Gemini co-founder and president Cameron Winklevoss announced the development on Feb. 26, sharing an SEC notice stating that the agency will not recommend enforcement action “based on the information we have as of this date.”
On Monday, the SEC informed our litigation counsel @JackBaughman27 that it has closed its investigation into @Gemini and will not be pursuing an enforcement action against us. This comes 699 days after the start of their investigation and 277 days after they sent us a Wells… pic.twitter.com/dTjg9CJXVl
— Cameron Winklevoss (@cameron) February 26, 2025
This decision follows the SEC’s previous charges against Gemini and crypto lending firm Genesis Global Capital on Jan. 12, 2023. The regulator had accused both firms of offering unregistered securities through Gemini’s “Earn” program. Despite closing the investigation, the SEC emphasized that this is not an exoneration, leaving open the possibility of future action.
Gemini’s Response: Regulatory Damage Done
Winklevoss criticized the SEC’s handling of the case, lamenting the immense financial and operational burden the agency’s probe inflicted.
“The SEC cost us tens of millions of dollars in legal bills alone and hundreds of millions in lost productivity, creativity, and innovation,” Winklevoss stated. He argued that the broader crypto industry has suffered from the regulator’s aggressive stance, with lost economic growth reaching unquantifiable levels.
The SEC’s decision to drop its case against Gemini is part of a broader pattern. On Feb. 21, the agency also closed its investigation into Coinbase, which had been accused of operating as an unregistered securities broker. On the same day, the SEC dropped its case against NFT marketplace OpenSea. More recently, it ended investigations into Uniswap Labs and Robinhood Crypto, signaling a shift in the regulatory climate.
A Turning Point for Crypto Regulation?
The crypto industry’s long battle with regulatory scrutiny may be entering a new phase. Former SEC Chair Gary Gensler, who led an aggressive crackdown on crypto firms during his tenure starting in 2021, resigned on Jan. 20, 2025—the same day crypto-friendly Donald Trump began his second term as U.S. president. Trump had vowed to remove Gensler, criticizing his regulatory approach as stifling innovation.
Winklevoss views this latest SEC decision as a step toward ending what he calls a “war on crypto.” However, he argues that significant damage has already been done, as many firms and developers may have been deterred from participating in the space. To prevent future “sham investigations,” Winklevoss advocates for legislative reforms, including penalties for regulators responsible for what he deems baseless enforcement actions.
Also Read: Ripple Partners with BDACS to Secure XRP & RLUSD Custody in South Korea
As the regulatory landscape shifts, the crypto industry remains hopeful for clearer, more balanced regulations that foster innovation rather than stifle it.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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