US SEC Halts Gemini Investigation Without Taking Enforcement Action

The United States Securities and Exchange Commission (SEC) has officially ended its investigation into the crypto exchange Gemini. This adds to the growing number of firms no longer under the regulator’s immediate scrutiny.

The SEC’s investigation into Gemini began after charges were filed on January 12, 2023. The regulator accused Gemini and crypto lending firm Genesis Global Capital of offering unregistered securities through the Gemini Earn program.

SEC Ends Gemini Probe

Gemini co-founder and president Cameron Winklevoss shared a notice from the SEC on February 26, confirming that the agency had concluded its inquiry. The regulator stated that, based on the information currently available, it would not pursue enforcement action against the exchange.

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

However, the SEC clarified that its decision does not clear Gemini of wrongdoing and does not guarantee that action won’t be taken in the future. The agency retains the right to revisit the case if new information emerges.

Winklevoss responded to the announcement by criticizing the SEC’s handling of the crypto industry. He argued that the agency’s actions had inflicted significant financial and operational damage, with the industry facing substantial legal costs and setbacks in innovation.

“The SEC’s behavior in aggregate toward other crypto companies and projects cost orders of magnitude more and caused unquantifiable loss in economic growth for America,” Winklevoss stated.

SEC Eases Crypto Crackdown Under New Leadership

During Gary Gensler’s tenure as SEC chair, the regulator adopted an aggressive stance, initiating over 100 enforcement actions against crypto-related businesses since 2021. In contrast, since Mark Uyeda took over as acting chairman, the SEC appears to be taking a less confrontational approach.

This shift in regulatory posture is evident in recent decisions. Without filing charges, the SEC recently dropped its investigation into Uniswap Labs, the team behind the Uniswap decentralized exchange.

Similarly, Robinhood Crypto announced last week that the financial watchdog had closed its investigation into the company. The probe had originated from a Wells Notice issued in May 2024, which suggested potential regulatory violations in its crypto services.

Furthermore, the SEC is moving to dismiss its two-year lawsuit against Coinbase. Meanwhile, the regulator and Binance have temporarily paused their ongoing legal battle.