In a significant retreat from crypto-industry oversight, the Securities and Exchange Commission (SEC) has dropped its long-standing lawsuit against Gemini Trust, the crypto exchange founded by billionaire twins Tyler and Cameron Winklevoss.
The case centered on the 2022 collapse of the “Gemini Earn” program, which left hundreds of thousands of investors unable to access nearly $1 billion in assets for over 18 months. In a filing made public on Friday, January 23, 2026, federal regulators agreed to dismiss the charges with prejudice.
Key Factors in the Dismissal
- Investor Recovery: The SEC cited the fact that investors were “made whole” as a primary reason for the withdrawal. This recovery was largely driven by a prior settlement with the New York Attorney General’s office and bankruptcy proceedings for Gemini’s partner, Genesis Global Capital.
- Shift in Leadership: Under the Trump administration, the SEC has pivoted toward what Chairman Paul Atkins calls “bread-and-butter” enforcement, moving away from the aggressive “regulation by enforcement” approach seen during the Biden administration.
- Political Context: The Winklevoss twins are prominent allies of President Trump, having donated millions to his re-election efforts and participating in various Trump-family business ventures.
Dismissed Crypto Cases (2025–2026)
Gemini is the latest in a wave of high-profile dismissals. Since the return of the Trump administration in January 2025, the SEC has pulled back on more than 60% of its pending crypto lawsuits.
| Company | Date Dismissed | Original Allegation | Status |
| Coinbase | Feb 2025 | Operating as an unregistered securities exchange. | Dismissed with prejudice. |
| Binance | May 2025 | Extensive deception and unregistered operations. | Dismissed with prejudice; Founder CZ later pardoned. |
| Robinhood Crypto | Feb 2025 | Investigated over its listing of digital assets. | Investigation closed; no charges filed. |
| OpenSea | Feb 2025 | NFTs categorized as unregistered securities. | Investigation closed. |
| Ripple (Appeal) | Aug 2025 | Unregistered sale of XRP tokens. | Appeal withdrawn; case resolved. |
| Kraken | Mar 2025 | Operating as an unregistered broker and exchange. | Case dismissed. |
| Ondo Finance | Nov 2025 | Offering of tokenized securities. | Investigation closed. |
| Gemini Trust | Jan 2026 | Unregistered offer and sale of “Gemini Earn.” | Dismissed with prejudice. |
The New Regulatory Landscape
The SEC maintains that these dismissals are based on policy shifts rather than political favoritism. The agency has established a new Crypto Task Force, led by Commissioner Hester Peirce, to focus on creating a clear regulatory framework rather than litigating existing business models.
Despite the SEC’s claims of neutrality, critics note that every major firm with business or political ties to the Trump family has seen its federal legal troubles vanish over the past year. The agency’s remaining crypto dockets now consist almost entirely of lesser-known defendants with no political connections.
