SEC Closes Investigation Into Gemini Marking a Shift in Crypto Regulation

• The SEC has closed its investigation into Gemini, marking a potential shift in crypto regulation.
• Cameron Winklevoss criticized the SEC’s actions, citing significant financial and innovation losses.
• Other crypto firms, including Coinbase and Uniswap Labs, have also had cases dropped recently.

The United States Securities and Exchange Commission (SEC) has closed its investigation into Gemini, marking a potential shift in crypto regulation. Cameron Winklevoss criticized the SEC’s actions, citing significant financial and innovation losses. Other crypto firms, including Coinbase and Uniswap Labs, have also had cases dropped recently

The U.S. financial authority has officially closed its investigation into crypto exchange Gemini, marking another case where the regulator has stepped back from its aggressive enforcement actions in the crypto industry. This decision adds Gemini to a growing list of firms that have momentarily escaped the SEC’s scrutiny, signaling a potential shift in regulatory pressure.

On February 26, Cameron Winklevoss, co-founder and president of Gemini, announced that the SEC had concluded its investigation into the exchange. According to the regulator, it would not recommend an enforcement action “based on the information we have as of this date.”

The investigation stemmed from a lawsuit filed by the U.S. financial authority on January 12, 2023, against Gemini and Genesis Global Capital. The agency accused both firms of offering unregistered securities through Gemini’s “Earn” program, which allowed users to earn interest on their crypto deposits. However, while the case has now been dropped, the Commission clarified that this decision does not equate to an exoneration, nor does it prevent potential future action.

For Gemini, the closure of the investigation brings little relief. Winklevoss expressed his frustration, stating that the SEC’s relentless pursuit had caused significant financial damage not just to Gemini but to the broader crypto industry.

“The U.S. financial authority cost us tens of millions of dollars in legal bills alone and hundreds of millions in lost productivity, creativity, and innovation,” Winklevoss said. “Of course, Gemini is not alone.”

SEC Softens on Crypto as Cases Drop

Gemini isn’t the only firm to have a case dropped. In the past month, the U.S. financial authority closed investigations into Coinbase, OpenSea, Uniswap Labs, and Robinhood Crypto. This shift hints at a softer regulatory stance, possibly driven by political and leadership changes.

While many in the crypto industry welcome the SEC’s retreat, Winklevoss argues that the damage is already done. He believes the regulatory attacks have discouraged innovation, driving crypto projects and talent away from the U.S.

“The SEC’s behavior toward other crypto companies has caused unquantifiable economic losses for America,” he said.

To prevent future regulatory overreach, Winklevoss called for legislation that holds agencies accountable for “sham investigations and baseless enforcement actions.” He suggested penalties for U.S. financial authority officials involved in such cases, including firings, bans from future agency work, and reimbursement for crypto firms’ legal costs.

“It’s wholly unacceptable for an agency like the U.S. financial authority to bully, harass, and attack a lawful industry and then simply walk away,” Winklevoss emphasized.

The SEC’s changing stance aligns with a shift in political leadership. Former SEC Chair Gary Gensler, known for his aggressive crackdown on crypto, resigned on January 20, 2025—the same day Donald Trump began his second term as U.S. president.

Gensler’s tenure, which began in 2021, saw the U.S. financial authority initiate more than 100 enforcement actions against crypto firms. However, Trump, who campaigned on a promise to fire Gensler, signaled a more crypto-friendly regulatory approach.

With new leadership at the U.S. financial authority and a potential shift in policy, the crypto industry may be turning a page. Yet, for Winklevoss and many others, the fight is far from over. Their focus now is on ensuring that the regulatory turmoil of the past few years never happens again.

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