The United States Securities and Exchange Commission has completed its investigation into the crypto exchange Gemini, sparking discussion across the industry.
SEC's Stance and Its Impact on Crypto Firms
On January 12, 2023, SEC charged Gemini and Genesis Global Capital for using the "Earn" program to offer unregistered securities. The decision to halt the investigation is part of a broader trend: closing cases against Coinbase, OpenSea, Uniswap Labs, and Robinhood Crypto. These decisions provide a short-term respite for crypto companies and signify a shift in regulatory monitoring.
Future of Crypto Regulation and Prospects
Besides Gemini, several firms, including Coinbase and OpenSea, were also under investigation, but their cases were closed on February 21. Winklevoss called for meaningful legislative reforms to prevent future regulatory overreach and suggested that SEC staff involved in investigations should be held accountable.
Current Changes in SEC Leadership and Their Implications
Gary Gensler, known for his strict crypto policies, resigned on January 20, 2025. His departure coincided with Donald Trump’s second presidential term, who criticized Gensler's approach and pledged to remove him.
The closure of the SEC's investigation into Gemini demonstrates potential changes in the regulatory approach to the cryptocurrency market, though uncertainty remains regarding future regulatory actions. Companies continue to call for a more balanced approach and protection from unwarranted measures.
