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- The SEC closed its investigation into Gemini after 699 days, opting not to take enforcement action against the crypto exchange.
- Cameron Winklevoss demands accountability, proposing that agencies refund three times legal costs if they investigate without clear guidelines.
The United States Securities and Exchange Commission (SEC) surprised everyone by completing its inquiry into Gemini without taking any enforcement action. The crypto corporation started by Cameron and Tyler Winklevoss may now exhale after almost two years in limbo.
For Cameron Winklevoss, however, this marks only the beginning of a road to guarantee similar events never again in the future—rather, it is not the end of the world.
SEC Ends Gemini Probe After Nearly Two Years
The SEC told Gemini’s attorneys on Monday that it was ending the probe without any more action. The closure marks 699 days following the start of the inquiry and 277 days after Gemini got a Wells Notice, the first letter of warning indicating the SEC might be considering legal action.
Legal action directed against the crypto sector is not unprecedented. The SEC closed its probes on OpenSea, Robinhood, and Uniswap and earlier dropped its complaint against Coinbase. Nevertheless, the Winklevosses underlined the degree of the damage done even while the SEC seemed to be changing its attitude to control.
Crypto Innovation Stifled by Regulatory Uncertainty
To fight the probe, Gemini has had to pay tens of millions of dollars in legal fees. But the effects are far more general—hundreds of millions of dollars lost in crypto industry innovation, creativity, and productivity. Conversely, regulatory uncertainty has deterred many tech experts from joining the sector.
“How many engineers have ended up not going into crypto because of this regulatory onslaught? How many projects have been abandoned because founders would rather build their startups in their dorm rooms than in the boardrooms of law firms fighting absurd regulations?” Winklevoss said in a statement.
Winklevoss Calls for Accountability in Regulation
Winklevoss underlined that after seriously hurting the sector, the SEC cannot just stop an inquiry without repercussions. He said that a system should be in place to make sure authorities are answerable for their deeds.
One of Winklevoss’ suggestions is a reimbursement system, whereby if a government agency like the SEC opens an investigation without clear rules, it would have to reimburse the party being investigated for three times the legal costs. That way, companies don’t have to spend a lot of money just to fight investigations that are considered baseless.
On Monday, the SEC informed our litigation counsel @JackBaughman27 that it has closed its investigation into @Gemini and will not be pursuing an enforcement action against us. This comes 699 days after the start of their investigation and 277 days after they sent us a Wells… pic.twitter.com/dTjg9CJXVl
— Cameron Winklevoss (@cameron) February 26, 2025
Moreover, he demanded that personnel engaged in unjustified probes be promptly sacked and exposed. “After being directed to abandon crypto cases, how many SEC lawyers have quit in protest? Zero That implies they never really believed in the cases in the first place,” he said.
Gemini and The Resurfaced IPO Talk
On the other hand, CNF previously reported that Gemini was reconsidering its initial public offering (IPO) plan. In 2021, the Winklevoss brothers did express openness to this option but ultimately decided to postpone it due to the uncertain regulatory situation. Now, with regulations seemingly improving, it is possible that Gemini will re-evaluate the opportunity to go public.
Winklevoss underlined, nevertheless, that there has to be guarantees that authorities won’t misuse their authority once more before the crypto market can grow.
“”If there is no price to pay for this kind of behavior, then it will happen again in the future. Clear legislation can be a shield, but there must be a deterrent mechanism within the institutions themselves.”
The SEC’s decision to call off the probe is definitely welcome news for the crypto market. Winklevoss cautioned, though, that this is only the beginning of the struggle. “We will continue to fight for reform in government and ensure that this does not happen again. A brighter future awaits,” he said.
