The U.S. Securities and Exchange Commission (SEC) has officially closed its investigation into cryptocurrency exchange Gemini, the entity owned by billionaire twins Cameron and Tyler Winklevoss.
The news was announced by Cameron Winklevoss in a post on X, accompanied by a letter from the SEC dated Feb. 24, stating that the agency’s staff would not recommend enforcement action against Gemini.
The SEC had initially charged Gemini and Genesis Global Capital on Jan. 12, 2023, alleging that their jointly operated “Earn” program constituted an unregistered securities offering.
Despite the investigation concluding without penalties, the SEC emphasized that the decision was not an exoneration and did not preclude future regulatory action.
Gemini Co-founder Calls for Reform in Crypto Regulation
Cameron Winklevoss responded to the SEC’s decision by criticizing the agency’s regulatory approach. He argued that the lengthy probe had already inflicted significant financial and operational harm on Gemini, costing the company millions in legal fees and lost productivity.
Despite the SEC’s decision, Cameron maintained that the fight for fair regulation in the cryptocurrency industry is far from over. He emphasized the need for clearer regulatory guidelines to ensure that companies can operate without fear of arbitrary legal action.
The development aligns with a broader trend of regulatory retreat by the SEC in the digital asset space. In recent weeks, the agency has also dropped investigations into several major crypto firms, including Coinbase, OpenSea, Uniswap Labs, and Robinhood Crypto.
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