The U.S. Securities and Exchange Commission (SEC) has officially wrapped up its investigation into Gemini, but the crypto exchange’s co-founder, Cameron Winklevoss, is not satisfied with the outcome.
Closing the Investigation
On Monday, the SEC notified Gemini that it would not be pursuing any enforcement actions against the New York-based cryptocurrency exchange. This news was shared by Winklevoss in a post on X, marking the end of a lengthy inquiry that left many in the industry on edge.
Winklevoss expressed his disappointment regarding the SEC’s decision, stating that the conclusion of the investigation does little to alleviate the harm caused to both Gemini and the broader cryptocurrency sector. He highlighted the substantial costs incurred, lamenting, “The SEC cost us tens of millions of dollars in legal bills alone and hundreds of millions in lost productivity, creativity, and innovation.”
Impact on the Industry
Winklevoss also pointed out that the SEC’s actions against not just Gemini but other crypto entities have resulted in significant economic repercussions. He believes that the agency’s approach has stifled growth and innovation within the United States, leading to “unquantifiable loss in economic growth for America.”
Call for Accountability
Winklevoss emphasized the need for consequences for the SEC and its staff involved in the investigations. He warned that without accountability, federal agencies may continue to intimidate and impede lawful industries in the future. “If agencies refuse to write rules before launching investigations or enforcement actions, they should be responsible for reimbursing defendants for three times their legal costs,” he argued.
In a bold stance, Winklevoss suggested that all SEC personnel involved in the Gemini probe should face public dismissal, with their names and actions disclosed on the SEC’s official website. He stated, “It should not be acceptable to bring the full might of the U.S. government against fledgling companies in a nascent industry and hide behind a faceless agency.”
Historical Context of SEC Actions
This decision to drop the investigation into Gemini follows similar moves by the SEC regarding other crypto firms, including Uniswap Labs, Robinhood Crypto, and OpenSea. Additionally, the SEC has recently paused litigation against the Tron Foundation and its founder, Justin Sun, echoing similar motions in ongoing cases against Coinbase and Binance.
Conclusion
As the SEC concludes its investigation, the ramifications of its actions continue to resonate within the cryptocurrency industry. Winklevoss’s call for reform and accountability raises essential questions about regulatory practices and the future of crypto innovation in America. The SEC has yet to respond to inquiries regarding these developments.
