SEC Drops Gemini Investigation: Winklevoss Calls for Severe Penalties

The U.S. Securities and Exchange Commission (SEC) has concluded its investigation into Gemini, the cryptocurrency exchange founded by the Winklevoss twins, without bringing any charges. This decision comes amidst a series of recent moves by the Commission to drop investigations and close lawsuits, signaling a potential shift in its approach to the crypto industry.

Gemini co-founder Cameron Winklevoss expressed his dissatisfaction with the SEC's decision, suggesting that the agency should face severe penalties to deter future crackdowns on the crypto sector. Winklevoss claimed that the SEC sent a Wells Notice to Gemini last year, but the investigation never resulted in formal charges.

The SEC's recent reconciliatory gestures, including dropping investigations against Opensea, Robinhood, and Uniswap, as well as stalling its long-running suit against Ripple, have not appeased Winklevoss. He called for serious consequences for those involved in the actions against Gemini and the broader crypto industry, including making the SEC pay 3x the cost of its legal bills and banning its employees from federal employment for life.

The crypto industry faces a dilemma in light of its newfound political influence. The SEC, once a powerful opponent under former Chair Gary Gensler, is now seen as a potential ally. Under new leadership, the Commission has shown enthusiasm for creating new regulations, making it a valuable tool for the industry. However, the hostility engendered by the SEC's actions under Gensler has led some, like Gemini and Coinbase, to prefer destroying the Commission rather than using it.