The U.S. Securities and Exchange Commission (SEC) has officially closed its investigation into the crypto exchange Gemini, a decision announced by co-founder Cameron Winklevoss on February 26.
The SEC concluded that it will not recommend enforcement actions against the firm at this time, adding Gemini to a list of companies that have recently escaped regulatory scrutiny.
This comes after the SEC filed charges against Gemini and Genesis Global Capital in January 2023 for selling securities through the “Earn” program.
Although Winklevoss applauded the outcome of the investigation, he was disappointed with the amount of money Gemini and the whole crypto industry lost because of the SEC’s actions.
He noted that the SEC has been very active in going after firms, and as a result, firms have spent millions of dollars on legal fees, and the innovation of the firms has been impacted negatively.
The SEC has recently closed investigations into other notable firms, including Coinbase and OpenSea, but Winklevoss cautioned that the damage may already be done. He advocates for “thoughtful legislation” to prevent such situations, calling for accountability within the SEC for any unfounded investigations.
As the former Chair of the SEC, Gary Gensler resigned on January 20, 2025, and Donald Trump started his second term as the president of the United States.
Winklevoss still believes in the future of the new economy, especially calling for regulation to prevent over-regulation in the crypto and other emerging markets.
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