SEC Drops Gemini Probe, Winklevoss Demands Accountability

The U.S. Securities and Exchange Commission (SEC) has concluded its investigation into Gemini, the New York-based cryptocurrency exchange, without filing any enforcement charges. The SEC informed Gemini of this decision on Monday, according to a Wednesday X post by Gemini co-founder and President Cameron Winklevoss.

However, Winklevoss expressed dissatisfaction with the SEC's handling of the investigation, stating that the agency's actions have caused significant financial and reputational damage to Gemini and the broader cryptocurrency industry. He estimated that the SEC's investigation has cost Gemini tens of millions of dollars in legal fees and hundreds of millions in lost productivity and innovation.

Winklevoss also criticized the SEC's approach to regulating the cryptocurrency industry, arguing that the agency has failed to provide clear guidelines and has instead resorted to aggressive investigations and enforcement actions. He called for the SEC to be held accountable for its actions and suggested that the agency should be required to reimburse defendants for their legal costs if it fails to write rules before opening an investigation or bringing an enforcement action.

In his X post, Winklevoss also demanded that all SEC staff members involved in the probe into Gemini be publicly fired and their names, roles, and actions be posted on the SEC website. He argued that these individuals had a choice in their actions and should be held responsible for their role in the "unlawful war" against the cryptocurrency industry.

The SEC's decision to drop its probe into Gemini comes on the heels of similar moves by the agency to conclude investigations into other cryptocurrency companies, such as Uniswap Labs, Robinhood Crypto, and OpenSea. Additionally, the SEC has recently filed joint motions to pause litigation against the Tron Foundation and Justin Sun, Coinbase, and Binance.