SEC Clears Gemini Without Enforcement Action, Eliciting a Strong Rebuttal from the Exchange’s Co-founder

Highlights:

• The US SEC has closed investigations into Gemini without pursuing enforcement actions against the exchange.
• Reacting to the development, Gemini’s co-founder lambasted the SEC for its past actions.
• Cameron argued that the SEC’s overbearing regulatory guidelines could still resurface in the future.

In a lengthy tweet, Gemini co-founder Cameron Winklevoss confirmed that the United States Securities and Exchange Commission (SEC) closed investigations into Gemini. He also confirmed that the regulatory body will not pursue any enforcement action against the exchange.

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The co-founder added that the new development comes after a protracted legal battle with the regulatory watchdog. In his words, the case closure is happening 699 days after the SEC opened investigations to indict Gemini and 277 days after the regulatory agency sent the exchange a Wells notice.

Over the past few days, the SEC has cleared some leading crypto firms of charges against them without pursuing any enforcement actions. Some cleared companies include Coinbase, Robinhood, OpenSea, and recently Uniswap. Like Gemini, these companies were involved in a protracted legal dispute with the regulatory agency.

In his tweet, Cameron acknowledged the new trend, citing that it is a step in the right direction to end the war against crypto in the US. However, he argued that clearing or withdrawing charges against crypto firms will do little to correct the damages the SEC actions have caused the crypto industry and the US.

BREAKING: SEC CLOSES INVESTIGATION INTO @Gemini WITH NO ENFORCEMENT ACTION pic.twitter.com/QS1fVw2iq3

— DEGEN NEWS (@DegenerateNews) February 26, 2025

Cameron Winklevoss Blows Hot as the SEC Clears Gemini

Per Cameron, Gemini spent tens of millions of dollars in legal charges. In addition, the exchange forfeited over $100 million due to lost productivity, creativity, and innovation. “Of course, Gemini is not alone. The SEC’s behavior in aggregate towards other crypto companies and projects cost orders of magnitude more and caused unquantifiable losses in economic growth for America,” the co-founder added.

Arguing further, Cameron noted that the SEC’s unclear regulatory guidelines frustrated many developers and engineers into discarding valuable projects that would have become successful and economically impactful. He also stated that many promising prospects started considering industries other than crypto to build wonderful initiatives.

Ideas on How to Prevent a Repeat of the SEC’s Onslaught on the Crypto Industry

Having voiced strong dissatisfaction with the SEC, Cameron raised concerns about the prospect of similar actions re-occurring in the future. “Unless there is a cost and price to be paid for this behavior, it will happen again. Thoughtful legislation will form a shield of protection. But we also need strong deterrence inside the agencies themselves,” the co-founder argued.

Part of Cameron’s lengthy tweet contained possible ideas that could help prevent a repetition of the SEC’s unregulated actions. One method the co-founder suggested was a reimbursement system. According to Cameron, any agency that refuses to publicize explicit rules before opening investigations or bringing enforcement actions against any company would have to reimburse the indicted firm thrice all legal fees the court case had incurred.

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

In addition, the co-founder suggested the possibility of dishonorable discharge, targeting SEC lawyers who never opposed the regulatory body. Instead, they chose to enforce the regulatory body’s baseless directives. Cameron’s tweet also contained the idea of banning any agency that defaults.

In conclusion, Cameron stated that in as much as the SEC clears Gemini, his company would not rebuild trust and faith in any federal agency, except strict punishments have been drafted to prevent these bodies from becoming overbearing.

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