TLDR
- SEC terminated its 699-day investigation into Gemini without filing charges
- Gemini co-founder Cameron Winklevoss criticized the SEC for causing millions in legal costs
- Winklevoss demanded accountability, suggesting fired staff should be publicly named
- The SEC has recently dropped investigations into several crypto companies including Uniswap Labs, Robinhood Crypto, and OpenSea
- This may signal a shift in regulatory approach under acting SEC chair Mark Uyeda
The Securities and Exchange Commission (SEC) has ended its investigation into cryptocurrency exchange Gemini without filing any charges. The probe, which lasted 699 days, was closed on Monday when the SEC informed Gemini’s legal team of its decision.
Cameron Winklevoss, co-founder and president of Gemini, announced the news in a post on social media platform X on Wednesday. Despite the investigation being dropped, Winklevoss expressed frustration rather than relief.
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
The SEC had previously issued a Wells Notice to Gemini 277 days ago. A Wells Notice typically signals the agency’s intent to bring enforcement action, making the decision to drop the case unexpected.
Winklevoss claimed the investigation caused major financial harm to his company.
“The SEC cost us tens of millions of dollars in legal bills alone and hundreds of millions in lost productivity, creativity, and innovation,” he wrote.
The Gemini co-founder didn’t hold back in his criticism. He stated that the SEC’s actions against crypto companies have caused “unquantifiable loss in economic growth for America.”
Winklevoss called for consequences for both the SEC and individual staff members. He suggested that regulatory agencies should reimburse defendants for three times their legal costs when investigations are dropped.
He also demanded that SEC staff members involved in the Gemini probe be publicly fired. Winklevoss went further, suggesting their “names, roles, and the actions they participated in should be posted on the SEC website.”
End of Regulation by Enforcement
The end of the Gemini investigation comes amid a series of similar decisions by the SEC. The agency has recently dropped probes into Uniswap Labs, Robinhood Crypto.com, and OpenSea.
The SEC has also moved to pause its litigation against the Tron Foundation and its founder Justin Sun. Similar motions were filed in cases against major exchanges Coinbase and Binance.
This pattern suggests a shift in the SEC’s approach to cryptocurrency regulation. The changes have occurred under the leadership of acting SEC chair Mark Uyeda.
The recent regulatory retreat follows a period of aggressive enforcement under former SEC Chair Gary Gensler. During Gensler’s tenure, the agency pursued numerous actions against crypto companies.
Gemini previously reached a settlement with the SEC in March 2023. The company agreed to pay $21 million in fines related to its Gemini Earn program, which allowed users to earn interest on crypto holdings.
The SEC had claimed the program involved selling unregistered securities. This settlement was separate from the investigation that was just dropped.
Some industry experts see the SEC’s recent moves as signaling a more cooperative approach to regulation. Others remain skeptical about the agency’s long-term intentions toward cryptocurrency businesses.
Winklevoss ended his statement questioning the impact of the SEC’s actions on innovation: “How many years of innovation were kicked down the road at the expense of Americans? We will never know.”
