The U.S. Securities and Exchange Commission (SEC) has officially closed its investigation into Gemini without filing charges, marking another crypto case dropped amid shifting regulatory approaches. However, Gemini co-founder Cameron Winklevoss remains unsatisfied, calling for severe penalties against regulators who previously led aggressive enforcement actions against the crypto industry.
SEC’s Shift on Crypto Investigations
- The SEC ended its probe into Gemini nearly a year after issuing a Wells Notice, which initially signaled potential enforcement action.
- This follows the closure of investigations into Opensea, Robinhood, and Uniswap, hinting at a more crypto-friendly regulatory stance.
- The SEC has also:
- Settled with Coinbase on previous charges.
- Delayed its lawsuit against Ripple, though the case remains active.
- Prepared to resolve a civil fraud case with Tron.
Winklevoss Demands Accountability
Despite Gemini’s case being dropped, Winklevoss remains critical of the SEC’s past actions:
- Gemini paid a $5M fine to the CFTC, while its partner Genesis was fined $38M.
- Winklevoss argues that the SEC’s actions harmed U.S. crypto innovation and delayed progress in the industry.
- He has called for:
- The firing of SEC officials responsible for the crackdown.
- Public disclosure of their names, roles, and actions.
- The SEC to reimburse Gemini for three times its legal fees.
- Lifetime bans for those involved in unnecessary regulatory aggression.
What’s Next for Crypto Regulation?
- The SEC is shifting its stance, opening the door for industry-friendly regulations under new leadership.
- The crypto industry now faces a strategic choice:
- Work with the SEC to create favorable crypto regulations.
- Push for a complete overhaul of the SEC, given its previous hostility.
- The decision will shape the future of crypto regulation in the U.S., particularly as crypto gains more political influence.
The Bottom Line: A Regulatory Turning Point
The SEC’s retreat from aggressive enforcement could mark a new era for crypto regulation. Whether the industry collaborates with the SEC or seeks to dismantle its authority will have long-term consequences for the crypto market in the U.S..
Hidden Insight
While many see the SEC’s retreat as a win for crypto, the real battle is just beginning. If the industry embraces cooperation, crypto-friendly regulations could accelerate adoption. But if Winklevoss and others push for dismantling the SEC, it could lead to greater political battles and uncertainty, delaying progress for years.