Crypto company Gemini has confirmed the closure of the SEC investigation launched nearly two years ago. The SEC decided not to press charges following the examination of the company's activities.
History of the SEC Investigation
Gemini was initially charged alongside Genesis Global Capital in January 2023 over the sale of unregistered securities through the Earn program. This program allowed users to lend crypto assets in exchange for yield but was suspended when Genesis halted withdrawals in 2022. Though the case is now closed, the SEC clarified that this isn’t an official exoneration and left open the possibility of future action.
Gemini's Reaction and Cameron Winklevoss Comments
Co-founder of Gemini, Cameron Winklevoss, referred to this event as a landmark in the 'war on crypto', but noted that it doesn’t undo the 'tens of millions of dollars in legal bills' and broader industry setbacks. He stated that 'The SEC’s aggregate behavior towards other crypto companies and projects cost orders of magnitude more and caused unquantifiable economic growth loss for America.'
Proposals for Regulatory Reform
Winklevoss suggested several measures to prevent similar crackdowns. He called for reimbursement of legal costs for companies if regulators fail to establish clear rules before launching an inquiry, and a 'dishonorable discharge' for SEC employees involved in unjust actions. He also proposed an agency ban preventing those who weaponize the law from holding government positions. 'Just as the SEC bars individuals from trading securities if they break the law, there should be a process that bars those like Gary Gensler who weaponize the law, from being appointed to or hired by an agency again,' he added.
The SEC's closure of its investigation into Gemini marks a significant event for the crypto industry, raising questions about regulatory practices and suggesting a beginning of discussions on reforming regulatory bodies.
