SEC Drops Gemini Probe: Crypto's New Dawn

The U.S. Securities and Exchange Commission (SEC) has concluded its investigation into crypto exchange Gemini, with no enforcement action to be taken, as announced on Wednesday. Gemini co-founder Cameron Winklevoss, brother of Tyler, took to X to share the news, stating that the investigation had lasted 699 days and that a Wells Notice had been sent 277 days prior. Winklevoss described the closure as a significant milestone in the "war on crypto," but also criticized the previous SEC administration's approach to the crypto industry, calling for those involved to be fired.

This development comes amidst a broader shift in regulatory sentiment, with the SEC withdrawing cases against several crypto firms, including Coinbase, OpenSea, Robinhood, and UniSwap. Additionally, the SEC and crypto entrepreneur Justin Sun are exploring a potential resolution to their ongoing case involving fraud. Since former SEC Chair Gary Gensler's departure on Jan. 20, Acting Chairperson Mark T. Uyeda has been steering the SEC towards rolling back enforcement actions initiated against the crypto industry during the Biden administration. Republican Commissioner Hester Peirce has been tapped to lead a crypto task force, engaging with previously targeted firms and working with industry representatives to write crypto-specific rules.

Gemini, which is considering an initial public offering (IPO) this year, has previously reached settlements with regulatory bodies. In January, the Gemini Trust Company agreed to pay $5 million to settle a case brought by the U.S. Commodity Futures Trading Commission over misleading statements. Last June, Gemini agreed to pay $50 million in a settlement with the New York attorney general's office.