According to Cameron Winklevoss, co-founder of Gemini, the U.S. Securities and Exchange Commission (SEC) has officially closed its investigation into the crypto exchange without pursuing any enforcement action.
The investigation lasted 699 days, with the SEC issuing a Wells Notice 277 days ago before ultimately deciding to drop the case.
This decision comes amid a series of similar developments, including the withdrawal of the SEC’s lawsuit against Coinbase and the closing of investigations into OpenSea, Robinhood, and UniSwap.
The SEC’s retreat has sparked discussions about the broader impact of its regulatory approach on the crypto industry. Winklevoss accused the agency of crippling crypto businesses, costing many tens of millions of dollars in legal fees and hundreds of millions of dollars in lost time.
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He also discussed the impact these investigations have had in checkmating the innovation levels, arguing that the aggressive probe conducted by the SEC has discouraged engineers and other innovators from embracing the industry.
Call for Accountability in Regulatory Actions
Winklevoss proposed several measures to ensure accountability for regulatory agencies. He suggested that agencies should be required to reimburse companies three times their legal expenses if they initiate an investigation without first establishing clear regulations.
He also advocated for the immediate dismissal of officials involved in such cases, arguing that enforcement lawyers who supported these investigations should be publicly identified and held accountable.
Furthermore, he recommended that anyone who misuses regulatory power should be barred for life from serving in any government position. Winklevoss argued that these steps would act as a shield against unfair regulatory actions and help regain the public’s confidence in the federal authorities.
The conclusion of Gemini’s case is part of a broader shift in the SEC’s approach toward cryptocurrency firms. While the closure of investigations may provide relief to some companies, the impact of the prolonged legal battles remains a concern.
The ongoing debate highlights the need for clearer regulations to prevent similar situations in the future. Industry leaders continue to push for legislative reforms to ensure that emerging sectors, such as cryptocurrency, receive fair treatment under the law.
Also Read: SEC Dismisses Another High Profile Investigation, Ripple (XRP) Lawsuit Next?
