The Securities and Exchange Commission just pulled the plug on its lawsuit against Gemini, marking the latest sign of a dramatic regulatory shift in crypto enforcement. The move benefits Cameron and Tyler Winklevoss, the twins who not only founded the crypto exchange but also backed Donald Trump's re-election campaign and his family's business ventures. It's part of a broader pattern – the SEC has now dismissed, paused, or reduced penalties in over 60 percent of crypto lawsuits that were pending when Trump took office, according to The New York Times.
Gemini just scored a major legal victory that signals how dramatically the regulatory landscape has shifted for crypto companies. The Securities and Exchange Commission dropped its lawsuit against the exchange founded by Cameron and Tyler Winklevoss, filing a joint motion with the company on Friday to dismiss the case entirely.
The lawsuit centered on Gemini Earn, an investment product that collapsed and left some investors without access to their funds for 18 months. It was the kind of enforcement action that defined the SEC's aggressive stance toward crypto during the previous administration. But that era appears to be over.
According to the joint filing, the dismissal hinges on a 2024 settlement between New York state and Gemini. New York Attorney General Letitia James had sued Gemini in 2023, accusing the company of defrauding investors. That settlement ultimately returned "one hundred percent of the crypto assets they had loaned through the Gemini Earn program" to investors, according to court documents.
The Winklevoss twins aren't just any crypto entrepreneurs – they were vocal supporters and financial backers of Trump's re-election campaign. They also invested in his family's business ventures, creating ties that now look prescient given the administration's crypto-friendly posture.
This dismissal isn't an isolated incident. It's part of a sweeping regulatory retreat that's reshaping the industry. The New York Times previously reported that the SEC has dismissed, paused, or reduced penalties in more than 60 percent of crypto lawsuits that were pending when Trump took office. That's a staggering shift from the enforcement-heavy approach that characterized the previous administration's stance.
