- The SEC has closed its investigation into Gemini without bringing any charges.
- Cameron Winklevoss criticized the SEC, blaming it for massive legal costs and lost innovation.
The U.S. Securities and Exchange Commission (SEC) has formally closed its almost two-year probe of Gemini Trust Co., the crypto exchange established by the Winklevoss twins. Cameron Winklevoss said that the agency has resolved not to seek any enforcement action against the firm.
The investigation lasted 699 days and included a Wells Notice issued 277 days ago, signalling potential legal action. However, despite the SEC’s decision to drop the case, Cameron Winklevoss remains critical and did not express relief or satisfaction over the SEC’s decision in his statement.
Moreover, he condemned the agency’s aggressive approach, asserting that Gemini incurred tens of millions of dollars in legal fees and suffered hundreds of millions in lost productivity and innovation.
Cameron further stated:
“The SEC’s behavior toward other crypto companies and projects has cost orders of magnitude more and caused unquantifiable losses in economic growth for America.”
He urged monetary penalties against the regulatory body to stop future growing pains, especially in regard to the regulation of crypto lawful businesses.
Gemini’s IPO Consideration and Legal Battles
Gemini is also contemplating the issue of an initial public offering (IPO) later this year. Nevertheless, the company has not finalized any decision regarding the same.
In January, the firm agreed to pay $5 million to settle charges with the U.S. Commodity Futures Trading Commission (CFTC) over claims of misleading disclosures. In June 2023, Gemini settled a case with the New York Attorney General’s office for $50 million.
Shift in SEC’s Crypto Enforcement
The move to close the Gemini investigation is consistent with the SEC’s approach to crypto enforcement. Since Acting Chairperson Mark T. Uyeda took over following Gary Gensler’s departure, the agency has adopted a more crypto-friendly approach.
This policy shift follows the SEC’s recent withdrawals of legal actions against Coinbase, OpenSea, Robinhood, and UniSwap. The agency’s retreat has raised speculation that it may adopt a more measured approach in ongoing high-profile cases, including the lawsuit involving Ripple Labs.
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