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.