The SEC has closed its case against Gemini after nearly 700 days. Cameron Winklevoss has criticized the SEC’s actions.
Closure of the Gemini Case
In January 2023, the SEC initiated an investigation against Gemini and Genesis Global Capital for offering unregistered securities through their Earn program, which allowed users to lend crypto for yield. Cameron Winklevoss criticized the decision, calling it a significant moment in the fight against the SEC's stance on crypto but emphasized that it doesn't undo the damage done to the industry. The Earn program structure failed after Genesis halted withdrawals in the 2022 bear market.
Cameron Winklevoss's Proposals
Cameron Winklevoss proposed several measures to counter regulatory overreach. These include a reimbursement policy requiring regulators to compensate companies for their legal costs if clear rules are not established before investigations start. He also suggested a 'dishonourable discharge' for SEC officials responsible for unwarranted enforcement actions, advocating for their public dismissal and listing on the agency's website. He further recommended banning such individuals from holding government positions in the future.
SEC's Decision on OpenSea
The SEC closed its investigation into the NFT marketplace OpenSea without enforcement actions. OpenSea CEO Devin Finzer described this as a significant win for the community and digital collectables. He emphasized that classifying NFTs as securities could have hindered innovation in the space.
The SEC's decisions on Gemini and OpenSea highlight the complex relationship between cryptocurrency companies and U.S. regulatory bodies.
