SEC Concludes Probe Into Gemini After Nearly Two Years – Winklevoss Twins Question Fate of Crypto Battle
Following an investigation that spanned 699 days, the SEC has decided to close the inquiry into Gemini exchange, making it the fifth crypto entity to see its legal dispute settled or withdrawn in February.
The notification of the investigation’s termination was relayed to Cameron Winklevoss, co-founder of Gemini, on February 24th.
Celebrating the resolution, Winklevoss sees this as a significant development in what he considers the ongoing crypto conflict, expressing relief not only for Gemini but also for fellow entities like Coinbase and Uniswap[UNI].
Push for SEC Overhaul
Despite the positive outcome, Winklevoss criticized the substantial legal expenses and time expended by Gemini and others. He called for reimbursement of legal costs and urged for punitive measures against certain SEC members as a deterrent.
“It is entirely unacceptable for an organization such as the SEC to intimidate, pester, and assault a legal sector and then abruptly announce they are satisfied and depart.”
Winklevoss additionally suggested that individuals like former SEC chair Gary Gensler, who allegedly leveraged law enforcement, should face restrictions from future roles. He proposed these actions as preventive measures against a potential recurrence of incidents akin to ‘Operation Chokepoint’ or banking limitations for crypto firms.
“Operation Chokepoint did not conclude at 1.0. It persisted into 2.0 due to insufficient accountability for the actions of bureaucrats during 1.0. Without a genuine, public evaluation for 2.0, a 3.0 will undoubtedly emerge.”
Earlier in 2023, Gemini found itself in the SEC’s crosshairs over allegations of running an unregistered lending program, namely the Gemini Earn initiative. In collaboration with Genesis Capital, this program allowed users to lend out their cryptos and earn interest.
It’s worth noting the upsurge in regulatory reversals or halts occurring under the auspices of the new SEC.
On February 10th, the SEC suspended the lawsuit against Binance for a sixty-day interim period. Furthermore, the legal action against the Tron Foundation and its co-founder, Justin Sun, was also put on hold, according to insights from crypto attorney Jeremy Hogan.
“The SEC has agreed to temporarily halt proceedings in the Tron Foundation case and has requested a 60-day extension to resolve the matter…Yet another SEC crypto lawsuit is being put on hold.”
In 2023, Sun faces allegations from authorities relating to market manipulation and the illicit trading of Tron [TRX] as a ‘security.’
These regulatory adjustments are part of the SEC’s renewed effort to bring greater clarity to the industry, with its Crypto Task Force aiming to construct a comprehensive regulatory framework for the crypto market.