The SEC abandoned its research on Gemini without imposing sanctions, but Cameron Winklevoss denounces the devastating impact of the regulator’s actions for the cryptocurrency industry as a whole. This decision comes after more than a year of investigation into Gemini, a cryptocurrency exchange founded and directed by the Winklevoss brothers.
The SEC concluded its research on Gemini without recommending legal measures, at least for now. However, Cameron Winklevoss criticizes the millionaire cost that the process has had for Gemini and the crypto sector. The agency maintains the possibility of future actions, leaving uncertainty in the market. The news was shared by Cameron Winklevoss through a message on his X account, where he also included some reflections on the case.
Although the agency concluded its research without recommending sanctions, it clarifies that this does not mean a total exemption, and that actions could be taken in the future if new tests justify it. The actions undertaken by the SEC date back to what happened with the yield program, Gemini Earn, a product that offered users the possibility of generating interest with their cryptocurrencies. The agency had accused Gemini and its partner, Global Capital Genesis, of offering unregistered securities, which triggered an expensive legal confrontation for the company.
## Winklevoss Denounces Financial Damage to Gemini and the Industry
While the SEC’s decision avoids immediate sanctions, Winklevoss does not consider it a victory. He strongly criticized the agency, ensuring that the legal process left irreparable damage not only for Gemini but for the entire industry. “The SEC cost us dozens of millions of dollars in legal expenses and hundreds of millions in lost productivity, creativity, and innovation,” Winklevoss affirmed in his publication. The businessman stressed that Gemini was not the only affected company, noting that the aggressive approach of the SEC against other cryptocurrency projects has caused an incalculable negative impact on the economic growth of the US.
## The History of the SEC with the Crypto Industry
The case of Gemini is not an isolated fact. In recent years, the SEC has adopted an increasingly aggressive position against cryptocurrency companies, applying sanctions and demands to sector giants like Binance, Coinbase, and Ripple. Under the administration of Gary Gensler, the SEC has argued that many digital assets should be considered securities and, therefore, be subject to strict financial regulations. However, this interpretation has been widely questioned by businessmen and legislators, who demand a clearer regulation and adapted to the nature of the crypto industry.
After Gensler’s departure, the agency has adopted a more empathic approach to the crypto sector. Under the interim direction of Commissioner Mark Uyeda, the agency created a new working group for the crypto sector, headed by Commissioner Hester Peirce, known for her position in favor of this market. The agency has begun to evaluate the classification of certain tokens as “non-securities” and has started to withdraw open cases under the previous administration.
## What Follows for Gemini and Crypto Regulation?
Despite the closing of the investigation, Gemini still faces market challenges. Regulatory uncertainty in the US leaves open the possibility that the case can be reopened in the future. On the other hand, the pressure on the agency is increasing, with several legislators demanding more concrete rules and less litigation. They argue that the lack of an adequate regulatory framework is weakening the country’s competitiveness in the blockchain industry. The key will now be how the industry and regulators manage to find a midpoint between innovation and security, without drowning the growth of the sector with regulatory excesses.
It’s worth noting that investments in cryptoactive are not regulated in some countries and may not be appropriate for retail investors, as the total amount invested could be lost. It’s essential to see your country’s laws before investing and to be aware of the risks involved.