SEC Backs Off Gemini Exchange Investigation, but Winklevoss Demands Penalty

• SEC drops Gemini investigation, no formal charges filed.
• Winklevoss demands SEC penalties and firings.
• Cryptocurrencies gain ground with new regulatory stance.

The United States Securities and Exchange Commission has decided to close its investigation into Gemini, a cryptocurrency exchange founded by the Winklevoss brothers, without filing charges. The news, announced this week, marks a turning point in the relationship between the regulatory agency and the crypto sector, especially since other investigations, such as those against Opensea, Robinhood and Uniswap, have also been closed.

Despite the apparent relief, Gemini co-founder Cameron Winklevoss is not celebrating. He says the decision is too late and insufficient, and that it will require SEC officials to pay a heavy price for years of pressure on the industry.

Nearly a year ago, Gemini received a Wells Notice from the SEC, a warning that usually precedes legal action. But nothing has materialized, and the filing now raises debate about the impact of such protracted investigations. Winklevoss says the SEC’s retreat doesn’t erase the financial losses and delayed innovation Gemini has faced. He points out that the company has paid millions in legal fees and suggests the agency should compensate it with three times that amount. More than that, he wants names exposed and resignations of the regulators who led what he calls “unwarranted hostility.”

The SEC has dropped its investigation against us.

This comes 699 days after the start of their investigation, and 277 days after they sent us a Wells Notice.

Gemini has always stood for thoughtful regulation. And we will continue to do so.

Amazing awaits! https://t.co/aqhNMqYb6x

- Gemini (@Gemini) February 27, 2025

The context goes beyond Gemini. The SEC has shown signs of changing its approach to cryptocurrencies, with recent settlements like the one with Coinbase and delays in cases like Ripple. Still, the agency’s past under Gary Gensler’s leadership has left its mark. Gemini, for example, has already paid $5 million to the CFTC in another dispute, while its partner Genesis faced a $38 million fine. For Winklevoss, these actions reflect a failed policy that has harmed not only his company, but the entire crypto ecosystem in the U.S.

Winklevoss doesn’t mince words when criticizing the SEC’s lack of accountability. He advocates that those involved in aggressive investigations be banned from federal office and that their actions be detailed publicly. This stance echoes a growing sentiment in the industry: after years of clashes, the cryptocurrency industry is divided between taking advantage of the SEC’s new stance or seeking to dismantle its influence. Under new leadership, the agency is signaling openness to clearer rules, but its history of confrontation still weighs heavily.