Crypto Wars: Winklevoss Twins Declare Victory (Sort Of)

Well, it’s about time, old chap! The U.S. Securities and Exchange Commission has finally dropped its probe into Gemini, the crypto firm led by those dashing Winklevoss twins, Cameron and Tyler. It’s been a long and arduous journey, with the agency launching its investigation nearly two years ago and issuing a Wells Notice some 277 days later.

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…
— Cameron Winklevoss (@cameron) February 26, 2025

Gemini was originally charged alongside Genesis Global Capital in January 2023 over its now-defunct Earn program, which the SEC claimed involved the sale of unregistered securities. The program allowed users to lend crypto assets in exchange for yield but collapsed after Genesis halted withdrawals during the 2022 bear market.

Though the case is now closed, the SEC made it clear that this isn’t an official exoneration and left the door open for future action. Ah, the old “we’re not saying you’re guilty, but…”.

Cameron Winklevoss, ever the wit, called the recent development a milestone in ending the “war on crypto” but argued that it does little to undo the “tens of millions of dollars in legal bills” and the broader setbacks inflicted on the industry. One can almost hear him muttering, “It’s about time, old bean! Now, let’s get back to making some real money!” 🤑

Winklevoss didn’t stop at criticizing the SEC—he laid out a few ideas to prevent similar crackdowns in the future. He called for reimbursement measures, arguing that companies caught in regulatory battles should be compensated three times their legal costs if an agency fails to establish clear rules before launching an investigation.

Further, he suggested a “dishonorable discharge” policy, where SEC officials involved in what he sees as baseless enforcement actions would be publicly fired, with their names and roles listed on the agency’s website. One can almost imagine the SEC’s website looking like a naughty list, with Gary Gensler’s name at the top! 🤣

Winklevoss also proposed an agency ban, where regulators who have “weaponized the law” would be permanently barred from holding government positions. Ah, the old “you can’t handle the truth!” routine.

Under former SEC chair Gary Gensler, the agency took an aggressive stance against the crypto industry, bringing more than 100 enforcement actions against companies since 2021. His tenure saw lawsuits against major firms, including Coinbase, Binance, Ripple, and Kraken, over allegations of operating as unregistered securities platforms.

Gensler’s approach, often criticized as “regulation by enforcement,” led to legal battles that shaped the industry’s relationship with regulators. One can almost hear the industry whispering, “Well, that was a bit of a kerfuffle, wasn’t it?” 🤦‍♂️

Since Gensler’s departure in January, the SEC has begun dialing back its crypto litigation. Throughout February, the agency closed its investigations into Coinbase, OpenSea, Uniswap Labs, and Robinhood Crypto.

And so, the Winklevoss twins declare victory, but it’s a bit of a Pyrrhic one, don’t you think? After all, as Cameron Winklevoss himself said, “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.” Ah, the old “we’re not out of the woods yet” routine! 🌳

Well, there you have it, folks! The crypto wars may be winding down, but the battles are far from over. Stay tuned for more updates from the front lines! 🚀

Crypto Wars

And remember, as Cameron Winklevoss would say, “It’s not over till the fat lady sings… or in this case, till the SEC decides to drop its probe!” 🎤

2025-02-27 10:22

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