SEC ends investigation into Gemini exchange
SEC ends investigation into Gemini exchange
The U.S. Securities and Exchange Commission (SEC) has officially ended its investigation into crypto exchange Gemini and will not be pursuing enforcement action, Gemini co-founder Cameron Winklevoss announced on X.
Key Takeaways
- The SEC has closed its investigation into Gemini without charges, ending an almost two-year probe.
- Regulatory stance is shifting – the SEC is dropping cases against Coinbase, OpenSea, Robinhood, and UniSwap.
- Gemini is considering an IPO in 2024, though no final decision has been made.
- The crypto industry anticipates regulatory easing following the SEC leadership change.
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The decision marks a significant shift in regulatory sentiment following President Trump’s election, as the SEC has recently withdrawn cases against other major crypto firms, including Coinbase, OpenSea, Robinhood, and UniSwap.
“This comes 699 days after the start of their investigation and 277 days after they sent us a Wells Notice,” Winklevoss stated. He criticized the SEC’s past approach, arguing that it caused substantial financial and operational harm to Gemini and the broader crypto industry. “The SEC cost us tens of millions of dollars in legal bills alone and hundreds of millions in lost productivity, creativity, and innovation.”
Regulatory landscape and industry implications
The SEC’s decision follows a broader rollback of enforcement actions against crypto firms under Acting Chairperson Mark T. Uyeda, who took over after former Chair Gary Gensler stepped down on Jan. 20. The agency has shifted toward a more industry-friendly approach, appointing Republican Commissioner Hester Peirce to lead a crypto task force aimed at drafting clearer regulations.
Gemini is now reportedly considering an initial public offering (IPO) later this year. However, the firm has not yet made a final decision. Despite the SEC’s decision to drop its case, Gemini remains entangled in legal matters. In January, the company agreed to pay $5 million to settle a case with the U.S. Commodity Futures Trading Commission (CFTC) over misleading statements. Additionally, last June, Gemini settled with the New York attorney general’s office for $50 million.
Gemini exchange trade volume. Source: CoinGecko.
With the SEC scaling back its aggressive enforcement actions, crypto industry players view the recent policy shift as a potential turning point. The end of the Gemini investigation adds to a growing list of regulatory retreats, signaling a more open approach to engaging with the digital asset sector.
While challenges remain, the evolving regulatory environment could pave the way for clearer guidelines, increased institutional participation, and renewed innovation in the U.S. crypto space.
