This decision came nearly 700 days after the probe began and almost a year after Gemini received a Wells Notice.
A win for Gemini and crypto, but Winklevoss slammed the SEC. He argued that the agency’s approach cost Gemini millions in legal fees. It also caused immense damage to innovation and economic growth.
A Pattern of Overreach
The Gemini case isn’t an isolated incident. The SEC has also backed off cases against Coinbase, OpenSea, Robinhood, and Uniswap. These reversals suggest the agency may have overstepped, raising concerns about its aggressive stance on crypto regulation.
Winklevoss pointed out that regulatory uncertainty has pushed engineers and entrepreneurs away from crypto. Many promising projects never got off the ground because founders feared navigating what he called a “Kafkaesque crypto regulatory hellscape.” This hostile environment, he argued, has slowed down U.S. innovation while other countries race ahead.
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
Calling for Accountability
Winklevoss didn’t just criticize the SEC, he proposed bold reforms to prevent future overreach. His ideas include:
- Reimbursement: Agencies that fail to establish clear rules before launching investigations should cover legal costs—triple the amount. This would ensure companies aren’t financially drained by baseless enforcement actions.
- Dishonorable Discharge: Officials involved in bad-faith investigations should be fired and publicly named on the SEC’s website. If they truly believed in their cases, why didn’t they resign when instructed to drop them?
- Agency Ban: Just as the SEC bars individuals from trading after misconduct, those who abuse regulatory power—like SEC Chair Gary Gensler, Winklevoss suggests—should be banned from holding government positions.
Moving Forward
Winklevoss made it clear that while the SEC closing its case against Gemini is a milestone, it’s far from the end of the fight. Without serious consequences for those who weaponized regulation, he warned that future industries could face similar battles.
Crypto has long faced an uphill climb in Washington, but as Winklevoss put it, this is just the beginning of ensuring the government plays fair. It’s time to hold regulators accountable and create a system where innovation can thrive without fear of unwarranted crackdowns. As the saying goes, “sunlight is the best disinfectant,” and the crypto industry is demanding a long-overdue reckoning.
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