The U.S. Securities and Exchange Commission (SEC) has officially closed its investigation into Gemini, the prominent crypto exchange co-founded by Cameron Winklevoss. The SEC confirmed on February 26 that it would not take any enforcement actions against the company, marking a significant development for the crypto industry. This decision places Gemini among other firms that have recently avoided regulatory penalties.
This closure follows a legal battle that began in January 2023 when the SEC filed charges against Gemini and Genesis Global Capital for allegedly offering unregistered securities through their “Earn” program. Despite the resolution, Winklevoss expressed relief at the investigation’s end but voiced disappointment over the financial toll it took on Gemini and the broader crypto sector. He noted that the SEC’s aggressive stance had resulted in millions of dollars in legal costs for companies, stifling innovation in the industry.
While Winklevoss welcomed the decision, he also highlighted the broader impact of the SEC’s actions on the crypto ecosystem. He pointed to the heavy legal expenses incurred by firms and the dampening of innovation due to the ongoing regulatory scrutiny. Winklevoss also emphasized the need for more balanced, “thoughtful legislation” that would protect the industry from over-regulation and ensure accountability for investigations that lack merit.
In recent months, the SEC has also closed investigations into other notable crypto firms, including Coinbase and OpenSea, yet Winklevoss warned that the damage from these probes might already be irreversible. He called for more transparency and accountability from regulatory bodies, especially in the context of an evolving digital economy.
Winklevoss’s comments come at a time of shifting leadership at the SEC. Gary Gensler, the former SEC Chair, resigned in January 2025, coinciding with the beginning of Donald Trump’s second presidential term. Despite these changes, Winklevoss remains optimistic about the future of the crypto industry, stressing the importance of clear, forward-thinking regulation to foster innovation without stifling growth.
