SEC Drops Gemini Probe; Winklevoss Demands Accountability

SEC Closes Gemini Investigation

The Securities and Exchange Commission (SEC) has closed its investigation into Gemini, the cryptocurrency exchange founded by the Winklevoss twins, without filing any charges. This follows a recent trend of the SEC dropping other investigations, including those into Opensea, Robinhood, and Uniswap. While this might seem like a positive development for the crypto industry, Gemini co-founder Cameron Winklevoss isn't celebrating.

Winklevoss Demands Accountability

Winklevoss expressed his dissatisfaction with the SEC's decision, arguing that the agency's actions have caused significant harm to Gemini, the broader crypto industry, and the US economy. He is calling for serious consequences for those involved, suggesting penalties such as:

• Firing and public shaming of SEC employees involved.
• Triple reimbursement of Gemini's legal fees.
• Lifetime ban on SEC employees working in federal agencies.

Winklevoss highlights that the SEC's investigation, initiated with a Wells Notice nearly a year ago, never resulted in formal charges. This lack of action, coupled with the SEC's recent string of dropped cases and settlements, fuels his calls for increased accountability.

Industry Implications

The SEC's recent actions, including settlements with Coinbase and Tron, and a potential settlement with Ripple, are indicative of a shifting regulatory landscape. However, this change isn't universally welcomed. The experience with the SEC under former Chair Gary Gensler has left some companies, like Gemini and Coinbase, feeling that regulatory cooperation isn't a viable path. This raises a crucial question: should the crypto industry work within the current regulatory system or actively seek to change it?

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The path forward for the industry remains uncertain, with a balance needing to be struck between advocating for favorable regulations and acknowledging the potential value of constructive engagement with regulatory bodies. The coming months will be pivotal in determining the future trajectory of crypto regulatory interactions.