The US Securities and Exchange Commission (SEC) has closed its investigation into Gemini Exchange, the crypto platform founded by the Winklevoss Twins, Tyler and Cameron. 

According to an X post by Cameron, co-founder and President of the New York-based cryptocurrency exchange, the SEC informed the platform’s litigation counsel that it would not be pursuing enforcement action against it.

US SEC Investigates Gemini

In December 2020, the SEC launched an investigation into Gemini after the crypto exchange launched its Earn program, which allowed users to lend their crypto assets to Genesis Global Capital in exchange for interest. 

The SEC launched an investigation into Gemini and Genesis, accusing them of offering unregistered securities through the program.

The investigation lasted nearly two years, with the SEC sending a Wells Notice to Gemini in May 2023. However, in February 2025, the SEC informed Gemini’s litigation counsel that it had closed the investigation and would not pursue enforcement action.

The Fight’s Not Over: Gemini Takes Aim at SEC

In his X post, Cameron expressed his mixed emotions following the SEC’s decision to drop its investigation into Gemini. While he expressed relief, he also expressed frustration about the significant damage the prolonged case inflicted on Gemini.

He highlighted the substantial financial toll, citing tens of millions of dollars in legal fees and hundreds of millions in lost productivity and innovation. Cameron also emphasized the broader impact on the crypto industry, pointing out similar lawsuits and investigations into top players like Coinbase, OpenSea, Robinhood, and UniSwap.

“The SEC cost us tens of millions of dollars in legal bills alone and hundreds of millions in lost productivity, creativity, and innovation. Of course, Gemini is not alone. The SEC’s behavior in aggregate towards other crypto companies and projects cost orders of magnitude more and caused unquantifiable loss in economic growth for America,” Gemini stated.

In addition, the crypto platform’s co-founder also stated that the SEC be held accountable, proposing reforms such as reimbursement for legal costs incurred during unjust investigations and public consequences for individuals involved in aggressive enforcement actions. He also emphasized the need for thoughtful legislation to protect the crypto industry and ensure that regulatory agencies do not abuse their power.

The SEC’s decision to officially close its investigation into Gemini without pursuing enforcement action suggests a potential shift in the agency’s approach to regulating cryptocurrency exchanges. In a similar development, the SEC also dropped its lawsuit against popular crypto exchange Coinbase.