Crypto exchange Gemini has announced that the United States Securities and Exchange Commission (SEC) has concluded its investigation into the company without taking any enforcement action. This marks a significant development for Gemini, which has been under regulatory scrutiny for various aspects of its operations.
No Enforcement Despite Ongoing Legal Challenges
The SEC had been investigating Gemini’s Earn program, which allowed users to earn interest on their cryptocurrency holdings. While this decision provides some relief for the company, Gemini is still entangled in legal battles, including a lawsuit from the New York Attorney General’s Office related to its dealings with the now-bankrupt Genesis Global Capital.
In a statement, Gemini shared: “We are pleased to announce that the SEC’s investigation into Gemini has been closed without any enforcement action. We have always maintained our commitment to compliance and transparency.”
However, Gemini continues to face regulatory scrutiny due to the Earn program, which led to lawsuits and financial complications when Genesis Global collapsed.
What This Means for Crypto Regulation
This decision by the SEC could indicate a more measured regulatory approach, rather than blanket enforcement actions. The SEC has aggressively targeted crypto firms, including Ripple, Binance, and Coinbase, but this outcome suggests that regulators may be reconsidering their strategies.
For Gemini, the focus will now shift toward legal defenses in other cases and the expansion of its services, including derivatives trading and international offerings.
