Victory for Gemini: SEC Closes Investigation Without Action, Says Winklevoss
SEC closes Gemini investigation without charges, clearing the exchange after a two-year probe.
Gemini’s SEC investigation into its Gemini Earn program, a crypto interest-earning service partnered with bankrupt Genesis, has concluded favorably.
Gemini’s two-year ordeal with the Securities and Exchange Commission (SEC) concluded in February 2025 when the SEC closed its investigation without pursuing enforcement action.
The SEC has decided not to pursue charges, a decision welcomed by Gemini co-founder Cameron Winklevoss who affirmed the company’s consistent adherence to legal guidelines.
SEC Withdraw Charges Against Gemini
This closure, without charges filed, is viewed favorably within the broader cryptocurrency industry, currently facing intensified regulatory scrutiny. The SEC’s actions could set a precedent, potentially distinguishing between genuinely fraudulent operations and compliant firms encountering industry-wide challenges, as seen with Binance and Coinbase.
Gemini, successfully navigating this investigation, plans to expand its services, rebuild user trust, and advocate for clearer US crypto regulations; it even hints at international expansion. The decision highlights that regulatory investigations don’t automatically equate to legal repercussions for compliant crypto exchanges operating in an evolving regulatory environment.
Gemini Takes Aim at SEC
The investigation, launched in December 2020 following the launch of Gemini’s Earn program—which allowed users to lend crypto assets to Genesis Global Capital—initially targeted both Gemini and Genesis for allegedly offering unregistered securities.
Moreover, while the SEC issued a Wells Notice to Gemini in May 2023, the ultimate decision to drop the case brought a mixture of relief and frustration for Gemini co-founder Cameron Winklevoss.
Winklevoss publicly lamented the substantial financial burden incurred, estimating tens of millions in legal fees and hundreds of millions in lost productivity and stifled innovation. He further broadened the critique, highlighting the SEC’s similarly aggressive actions against other major crypto players including Coinbase, OpenSea, Robinhood, and Uniswap, arguing the cumulative impact represented a significant impediment to American economic growth.
Moreover, he demanded SEC accountability, advocating for reimbursement of legal costs from unwarranted investigations, public consequences for aggressively enforcing officials, and legislation preventing future regulatory overreach.
The SEC’s decision, mirroring its recent dismissal of a lawsuit against Coinbase, hints at a possible recalibration of its regulatory approach towards cryptocurrency exchanges.
