- SEC closes Gemini investigation with no enforcement action, though future action remains possible.
- Winklevoss laments millions spent on legal fees and the lost productivity from the process.
- Co-founder calls for SEC accountability, urging reimbursement for unjust investigations.
The U.S. Securities and Exchange Commission (SEC) has officially closed its investigation into the cryptocurrency exchange Gemini.
The SEC informed Gemini’s litigation counsel on Monday that no enforcement action will be pursued against the company. Cameron Winklevoss shared this update on social media, noting that the decision comes nearly two years after the SEC began its investigation.
SEC Investigation into Gemini’s ‘Earn’ Program Ends
Gemini was accused of offering unregistered securities through its “Earn” program alongside crypto lender Genesis Global Capital in January 2023.
However, the agency clarified that the notice should not be interpreted as an exoneration. It also stated that this decision does not prevent future action based on the findings of the SEC’s investigation.
Jack Baughman, Gemini’s legal counsel, also confirmed the news on X. He wrote, “Everything Cameron says is true, and more so. The SEC gov approached this investigation with a mission: shut down the crypto industry. There needs to be a complete rethink of how regulation is done, at both the federal and state level.”
Crypto Industry Endures Costly Legal Battles
While the investigation’s closure is seen as a victory for Gemini, Cameron revealed the significant costs they faced during the legal process.
According to him, Gemini’s legal bills amounted to tens of millions of dollars, with hundreds of millions in lost productivity and innovation. This, he argued, is just one example of the damage caused by the SEC’s aggressive stance toward the crypto industry.
Related: Crypto Market Shaken by $245M Bitcoin Long Squeeze, Open Interest Declines
“The SEC’s behavior has not only hurt us but the broader crypto ecosystem and the American economy,” Winklevoss wrote in a statement. “We’ll never know how many engineers or projects were lost due to the regulatory climate created by the SEC.”
Industry Leaders Call for SEC Accountability
Gemini’s case is not isolated; the SEC has also closed investigations into other crypto platforms like OpenSea, Coinbase, Robinhood, and UniSwap.
Related: Dubai’s Virtual Assets Regulator Cracks Down on MKAN Coin for Illegal Operations
Even with the investigation’s conclusion, the Winklevoss twins and other industry leaders have called for greater accountability within the SEC. the Winklevoss’ proposed several reforms, including the SEC paying back legal costs if it launches investigations without clear rules in place.
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