The U.S. Securities and Exchange Commission (SEC) may have wrapped up its investigation into the crypto exchange Gemini, but the exchange isn’t backing down from its criticisms of the agency.
Cameron Winklevoss, co-founder and President of Gemini, shared an update on Wednesday via an X post that the SEC informed Gemini on Monday that it had decided to close its long-running investigation and would not be filing any enforcement charges against the company.
Despite the anticlimactic resolution, Winklevoss expressed dissatisfaction with the SEC’s handling of the case. He remarked that the agency’s retreat “does little to make up for the damage this agency has done to us, our industry, and America.” Winklevoss pointed out that the SEC’s actions had led to significant financial and operational setbacks for Gemini. “The SEC cost us tens of millions of dollars in legal bills alone and hundreds of millions in lost productivity, creativity, and innovation,” he wrote. He further emphasized that the agency’s broader actions against the crypto industry have resulted in even more extensive economic losses for the U.S.
Winklevoss also highlighted the potential for future misuse of power by federal agencies if there were no consequences for the SEC’s past behavior. He warned that without accountability, other agencies might repeat similar actions against the lawful crypto industry in the future. “Without consequences for both the SEC and the individual staff members involved,” Winklevoss said, “other federal agencies could again, in the future, ‘bully, harass, and attack a lawful industry’ and then simply walk away without repercussions.”
As part of his criticism, Winklevoss proposed that agencies like the SEC, which launch investigations or enforcement actions without providing clear rules beforehand, should be required to reimburse defendants for three times the legal costs they incurred. He also called for accountability within the SEC itself, urging that all staff involved in the Gemini probe be publicly dismissed and that their identities, roles, and actions be posted on the SEC website.
“It should not be acceptable to bring the full might of the U.S. government to bear against fledgling companies in a nascent industry and then hide behind a faceless agency or say you were ‘just doing your job’ or ‘following orders,’” Winklevoss stated. He criticized SEC staff for failing to fulfill their duty to “make a positive impact on the U.S. economy” and instead enabling what he called an “unlawful war against a lawful industry.”
This move from the SEC to close its investigation into Gemini follows similar actions in recent weeks, where the agency also dropped investigations into other prominent crypto entities such as Uniswap Labs, Robinhood Crypto, and OpenSea. Additionally, the SEC has filed motions to pause litigation against the Tron Foundation and Justin Sun, as well as ongoing cases against Coinbase and Binance, signaling a shift in its regulatory stance toward the crypto industry.
Winklevoss’s call for reform highlights a growing tension between the regulatory body and the emerging cryptocurrency sector as both sides continue to navigate the evolving landscape of digital assets.
