Gemini’s Cameron Winklevoss calls out SEC for bad regulatory practices

by | Jul 17, 2023 | Regulation, Follow up

Cameron Winklevoss

Key Points

  • Cameron Winklevoss has called out the US SEC for its bad crypto regulations following the Ripple case partial loss.
  • The Gemini boss has expressed that some SEC’s practices, such as allowing companies like Coinbase to go public only to charge them later, are ludicrous.

Gemini boss Cameron Winklevoss has expressed dissatisfaction with the US SEC’s unrealistic crypto regulation approach. He pointed out on Coinbase story where the US SEC allowed it to go live only to charge them later, calling it “ludicrous.”

SEC allowing a company to go public and then charging it is ludicrous- Cameron Winklevoss

Coinbase is one of the many crypto organizations that are ‘victims’ of the US SEC’s regulatory sword. The crypto exchange has featured in a high-profile lawsuit where the US SEC alleges that it is trading crypto securities in the country without its permit.

Coinbase has, however, challenged the allegation that it cleared with the regulator long before going live. However, the US SEC still feels that more needs to be done. In a Thursday court proceeding, SEC lawyers claimed that simply because it allows a company to go public doesn’t mean it has its blessings.

“Simply because the US SEC allows a company to go public, it does not mean that it is blessing the company’s business,” said SEC’s Peter Mancuso.

This statement has come through as a trap for companies, as the US SEC should only have allowed a company to go live in the first place if it was satisfied with the business it had outlined in the initial filing. 

Judge Faila replied to Mancuso, saying she was skeptical about the whole saga and would have thought that the form S-1 (a registration file) would have involved due diligence. She added:

“They (referring to SEC officials) could have said, ‘Hey, you have filed as a securities exchange.’ That was within their power was it not?”

Cameron Winklevoss has come out against the US SEC for doing this to Gemini, saying it’s ludicrous. Keep watching Fintech Express for more updates on Coinbase vs. SEC and other Fintech-related developments.