Gemini co-founder Cameron Winklevoss has called on the US Securities and Exchange Commission (SEC) to compensate the crypto exchange for its legal expenses and dismiss officials involved in its recently closed investigation.
In a statement on Feb. 26, Winklevoss revealed that the SEC had concluded its inquiry into Gemini without any charges being filed. This decision came almost two years after the investigation commenced and nearly a year after Gemini received a Wells Notice.
The SEC’s decision to drop the case against Gemini follows a trend of the agency withdrawing investigations into several crypto firms in recent days, including OpenSea, Robinhood, and Uniswap, as well as pausing its lawsuit against Binance.
Despite the SEC’s decision, Winklevoss criticized the agency’s handling of the situation, stating that the prolonged investigation had inflicted significant damage on the crypto industry and the US economy. He estimated that Gemini had incurred tens of millions of dollars in legal fees and suffered hundreds of millions in lost innovation and productivity.
Winklevoss emphasized that the SEC’s aggressive enforcement tactics have deterred engineers and entrepreneurs from entering the crypto space. He also pointed out that some projects may have been abandoned or never initiated due to the hostile regulatory environment created by the SEC.
To prevent regulatory overreach, Winklevoss proposed that companies should be reimbursed triple their legal costs if investigations fail to result in charges. Additionally, he recommended that SEC officials involved in unjustified enforcement actions should be permanently barred from holding future agency positions.
In his remarks, Winklevoss suggested implementing a lifetime ban on individuals like Gary Gensler, who misuse the law for their own agenda. He argued that without holding bad actors accountable, regulatory agencies will continue to stifle innovation and economic growth in the United States.
Winklevoss concluded by stating that without real accountability, federal agencies will repeat past mistakes, hindering progress and development in the country. He emphasized the importance of a public reckoning to prevent future regulatory overreach.
The call for accountability and transparency in regulatory actions is crucial for fostering trust and integrity in the financial sector. By holding officials accountable for their actions, the industry can move forward with confidence and ensure a level playing field for all participants.