The U.S. Securities and Exchange Commission (SEC) has officially closed its investigation into cryptocurrency exchange Gemini, marking yet another instance of regulatory scrutiny easing in the sector.

The move adds Gemini to a growing list of crypto firms that have recently avoided enforcement action from the regulator.

Gemini co-founder and president Cameron Winklevoss shared a notice from the SEC on February 26, stating that the agency had concluded its investigation and, based on the available information, would not recommend enforcement action.

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The SEC’s Case Against Gemini and Genesis

The investigation into Gemini stemmed from the SEC’s January 12, 2023, lawsuit against the exchange and Genesis Global Capital. The agency accused the firms of offering unregistered securities through Gemini’s “Earn” program, which allowed users to earn interest on their crypto deposits.

Despite closing the case, the SEC’s past actions have already taken a significant toll on Gemini, according to Winklevoss.

He estimated that legal fees alone had cost the company tens of millions of dollars, while the overall damage to productivity, innovation, and economic growth was much higher.

He argued that many projects and talented individuals may have been discouraged from entering the space due to the regulatory “attacks.”

The SEC’s decision to close its investigation into Gemini follows a series of similar moves in recent weeks.

On February 21, the regulator dropped its case against Coinbase, which had been accused of operating as an unregistered securities broker. That same day, the SEC also ended its probe into NFT marketplace OpenSea.

Additionally, the SEC recently withdrew its investigations into Uniswap Labs, the developer behind the Uniswap decentralized exchange, and Robinhood Crypto, which had received a Wells Notice in May 2024.

Winklevoss sees these regulatory reversals as a sign that the “war on crypto” may be coming to an end. However, he argued that real accountability is needed to prevent similar overreach in the future.

He called for “thoughtful legislation” and consequences for regulators who engage in “sham investigations and baseless enforcement actions,” suggesting that officials responsible should be removed from their positions and barred from future SEC roles.

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

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Regulatory Shift Under New Leadership

The change in approach coincides with a major shift in leadership. Former SEC Chair Gary Gensler, who had spearheaded an aggressive regulatory crackdown on the crypto industry, resigned. 

During his tenure, which began in 2021, the SEC launched more than 100 enforcement actions against crypto firms.

Gensler’s departure occurred on the same day that Donald Trump, who has signaled a more crypto-friendly stance, began his second term as U.S. president. Trump had previously vowed to fire Gensler if elected, a promise that appears to have played a role in the SEC’s shifting regulatory tone.

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