The U.S. Securities and Exchange Commission (SEC) has officially ended its probe into cryptocurrency exchange Gemini without pursuing enforcement action, according to a notice shared by Gemini co-founder Cameron Winklevoss.

The decision marks another case of the SEC stepping back from its aggressive oversight of the crypto industry, following similar closures involving Coinbase, OpenSea, Uniswap Labs, and Robinhood Crypto in recent weeks.

The SEC had previously charged Gemini and crypto lending firm Genesis Global Capital on Jan. 12, 2023, alleging the companies offered unregistered securities through Gemini’s “Earn” program.

Despite concluding its investigation, the SEC emphasized that the closure does not equate to exoneration and left open the possibility of future action.

READ MORE: SEC Chair Gary Gensler announces resignation

However, Winklevoss expressed frustration over the ordeal, arguing that the SEC’s tactics have inflicted severe financial and operational damage on Gemini and the broader crypto sector.

“The SEC cost us tens of millions in legal fees and hundreds of millions in lost productivity, creativity, and innovation,” Winklevoss said. He accused the regulator of undermining U.S. economic growth by targeting crypto firms with what he called baseless investigations, estimating the industry-wide toll to be in the billions.

The closure follows a string of SEC retreats, including its Feb. 21 decision to drop cases against Coinbase, accused of operating as an unregistered securities broker, and NFT marketplace OpenSea.

Investigations into Uniswap Labs and Robinhood Crypto, the latter of which received a Wells notice in May 2024, were also recently abandoned. These developments coincide with a shifting regulatory landscape, highlighted by the resignation of former SEC Chair Gary Gensler on Jan. 20—the same day crypto-friendly President Donald Trump began his second term.

Gensler, who spearheaded over 100 crypto-related enforcement actions since 2021, exited amid Trump’s campaign promise to oust him.

Winklevoss hailed the SEC’s latest move as a step toward ending the “war on crypto” but cautioned that the damage—lost projects, talent, and innovation—may be irreversible.

He called for “thoughtful legislation” to prevent future overreach and proposed penalties for SEC staff involved in unjustified enforcement, including termination and bans from agency roles, alongside compensation for affected firms.

“It’s unacceptable for the SEC to harass a lawful industry and then walk away unscathed,” Winklevoss said. “This is a new beginning to ensure this never happens again to crypto or any innovative industry.”

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