SEC Drops Gemini Probe: Winklevoss Sees End of Crypto War

The U.S. Securities and Exchange Commission (SEC) has concluded its investigation into Gemini, a U.S.-based cryptocurrency exchange, without recommending any enforcement action. This news was announced by Gemini co-founder Cameron Winklevoss, who stated that the SEC informed his lawyer, Jack Baughman, about the closure of the probe.

This development comes on the heels of the SEC dropping its case against Coinbase, another major cryptocurrency exchange, and shutting down investigations into several other platforms, including OpenSea, Robinhood, and Uniswap. Winklevoss sees these actions as a sign that the SEC's "war on crypto" may be coming to an end.

However, Winklevoss also expressed frustration with the SEC's actions, arguing that the agency's investigations have caused significant financial and economic damage to the crypto industry. He estimates that the SEC's actions have cost crypto companies tens of millions of dollars in legal fees and hundreds of millions in lost productivity and innovation.

To deter future abuses, Winklevoss proposes that regulatory agencies should reimburse three times the legal expenses incurred by companies that are subject to investigations or enforcement actions. He also suggests implementing lifetime bans for regulatory officials who "weaponize the law" by initiating investigations without first establishing clear rules.

Winklevoss believes that these measures are necessary to rebuild trust and integrity in federal agencies and to ensure that regulatory actions are fair and transparent. He argues that without serious consequences for bad faith actors, the crypto industry will continue to suffer from the negative impacts of arbitrary and costly investigations.