The United States Securities and Exchange Commission has closed its investigation into crypto exchange Gemini, adding to a growing list of firms that have escaped the regulator’s scrutiny for now.
In a Feb. 26 notice shared by Gemini co-founder and president Cameron Winklevoss, the SEC said it had concluded its investigation and “based on the information we have as of this date,” the regulator will not recommend an enforcement action.
The SEC charged crypto lending firm Genesis Global Capital and crypto exchange Gemini with offering unregistered securities through Gemini’s “Earn” program on Jan. 12, 2023.
However, the agency added the notice isn’t an exoneration and that it must not be construed as an indication that no action will be taken at a later date as a result of the SEC’s investigation.
The SEC has opted not to proceed with an enforcement action against crypto exchange Gemini. Source: Cameron Winklevoss
Winklevoss said closing the investigation for now is of little consolation after the “damage this agency has done to us” and the broader crypto industry.
”The SEC cost us tens of millions of dollars in legal bills alone and hundreds of millions in lost productivity, creativity, and innovation. Of course Gemini is not alone,” Winklevoss said.
“The SEC’s behavior in aggregate toward other crypto companies and projects cost orders of magnitude more and caused unquantifiable loss in economic growth for America,” he added.
It follows a swathe of similar actions by the SEC, with the agency closing its cases against crypto exchange Coinbase on Feb. 21, the exchange was accused of operating as an unregistered securities broker. The case against NFT marketplace OpenSea was closed on the same day.
The SEC also recently dropped its investigation into Uniswap Labs, the developer behind the Uniswap decentralized exchange and online brokerage Robinhood Crypto, which received a Wells notice on May 4.
Source: Cameron Winklevoss
Winklevoss said the move marks another milestone to end the war on crypto but added that the damage may have already been done, as some projects and other talent may have avoided the space in the face of the “regulatory attacks.”
To avoid similar situations, Winklevoss said there should be “thoughtful legislation” and a “cost and price to be paid” for “sham investigations and baseless enforcement actions.”
This could involve staff involved in the SEC enforcement actions being fired, barred from working at the agency, and affected crypto firms being reimbursed for costs.
Related: SEC task force continues meeting with firms over crypto regulations
“It’s wholly unacceptable for an agency like the SEC to bully, harass and attack a lawful industry and then decide one day to simply say we’re good and walk away,” Winklevoss said.
“I’m glad to be turning the page here as an industry, but this is not the end, rather the beginning toward ensuring this never happens again to the crypto industry or any other exciting, new frontier industry in the future.”
Former SEC Chair Gary Gensler, known for his hardline stance on crypto regulation, resigned on Jan. 20, 2025. Under his reign, which started in 2021, the SEC took an aggressive regulatory stance toward crypto, bringing upward of 100 regulatory actions against firms.
Gensler departed the same day that crypto-friendly Donald Trump started his second presidential term as US president. Trump had promised to fire Gensler once elected.
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