SEC Ends Investigation Into Gemini, but Winklevoss Criticizes the Cost

The US Securities and Exchange Commission’s (SEC) investigation into the cryptocurrency exchange Gemini is now complete. Gemini is now one of the cryptocurrency companies that are not immediately subject to regulatory investigation as a result of the decision.

Cameron Winklevoss, president and co-founder of Gemini, posted a notice from the SEC on February 26 announcing the conclusion of the inquiry. “We will not pursue enforcement action based on the information we have as of this date,” the agency said.

On January 12, 2023, the SEC first filed charges against Gemini and Genesis Global Capital for allegedly using the Gemini Earn program to promote unregistered securities. The SEC made it clear that this was not an exoneration and that further action was still possible even if the matter was dropped.

Winklevoss Criticizes SEC’s Actions

While the SEC’s decision removes immediate legal pressure, Winklevoss did not see it as a victory. He criticized the agency’s impact on Gemini and the broader crypto sector.

“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.

He further argued that the regulator’s actions against multiple crypto firms had led to “unquantifiable loss in economic growth for America.”

The decision follows similar actions from the SEC. On February 21, the agency ended its investigation into Coinbase, which it had accused of operating as an unregistered securities broker. The case against NFT marketplace OpenSea was also closed on the same day.

While Gemini and other firms are no longer under investigation, the SEC’s regulatory approach continues to create uncertainty in the crypto industry.