by Jude Ayua  

The Securities and Exchange Commission (US SEC), in the last week of February 2025, closed investigations into three cryptocurrency firms with no enforcement action. This development followed the dropping of earlier cases against Coinbase and OpenSea. 

Background and details

Robinhood

The US SEC’s investigation into Robinhood Crypto began with a Wells notice in May 2024, and ended without enforcement action on 24 February 2025. The US SEC investigated whether certain crypto tokens offered by Robinhood were securities.

On 25 February 2025, Robinhood announced in a press release that the US SEC had closed its investigation into its trading platform, Robinhood Crypto with no enforcement action. Dan Gallagher, Robinhood’s chief legal, compliance, and corporate affairs officer, noted, “This investigation never should have been opened. Robinhood Crypto always has and will always respect federal securities laws and never allowed transactions in securities.”

Uniswap

In the Uniswap Labs’ case, the US SEC issued Uniswap a Wells notice in April 2024, probing its status as an unregistered broker/exchange and the classification UNI token.

Uniswap, the developer of the decentralized exchange (DEx) Uniswap, shared in a blog post that the US SEC decided to close the case against it without enforcement action. “This is a huge win for DeFi and reaffirms what we’ve always known — that the technology we build is on the right side of the law, and our work is on the right side of history,” Uniswap noted.

Gemini

Founded by the Winklevoss twins, Gemini faced a more complex case. The US SEC filed a complaint in January 2023 against Gemini and Genesis Global Capital, alleging they offered unregistered securities through Gemini’s “Earn” program, which allowed users to earn interest on crypto deposits.

The US SEC closed its investigation of Gemini on 26 February 2025, with no enforcement action. Cameron Winklevoss, co-founder and president of Gemini, announced this in an X post. Winklevoss noted, “This marks another milestone to the end of the war on crypto,” but criticized the SEC for causing significant financial and innovation losses, calling for reforms. Although the exact status of the 2023 complaint remains unclear, this closure suggests the case may have been settled or dismissed.

Read also: US SEC drops cases against Coinbase and OpenSea.

Regulatory context

The US SEC’s closures of cases against Robinhood, Uniswap, and Gemini are part of current regulatory reforms under the new SEC leadership, following Gary Gensler’s resignation on 20 January 2025. The SEC has been actively investigating cryptocurrency platforms, considering whether digital assets qualify as securities. Gensler’s tenure was marked by an aggressive “regulation by enforcement” approach, with over 100 enforcement actions against crypto firms since 2021, targeting companies like Coinbase, Binance, and Ripple.

The current US SEC’s Acting Chairman, Mark T. Uyeda, and Commissioner Hester Peirce, who heads the Crypto Task Force, have taken a more favorable approach, working with industry representatives to craft clearer guidelines. The recent closures of enforcement cases and investigations, including those against Robinhood, Uniswap, and Gemini, are evident of a regulatory reform under the new SEC leadership.

Also, the current regulatory shift is a response to criticism of the previous regulatory overreach, which industry leaders like Cameron Winklevoss have called for accountability. Winklevoss also suggested the firing of SEC staff involved and reimbursement for legal costs estimated at tens of millions for Gemini alone.

Read also: XRP is predicted to reach $10 as Ripple’s legal battle nears end.

Implications and industry reaction

The US SEC’s closures of investigations against Robinhood, Uniswap, and Gemini are viewed as a positive development for the cryptocurrency sector, with the expectations of potentially boosting investor confidence and encouraging innovation, especially in decentralized finance (DeFi).

Amanda Tuminelli, Chief Legal Officer at the DeFi Education Fund, commented about Uniswap: “The SEC’s decision gives DeFi companies additional comfort to pivot from defending to embracing our right to build decentralized tech.” 

Notwithstanding, the damage from prolonged investigations is still significant. For example, Gemini’s Winklevoss have highlighted lost productivity and innovation, which have cost the industry unquantifiable economic growth.

While the closures of these cases suggest a more crypto-friendly approach, the US SEC has not issued formal statements regarding their decision.

The current developments at the SEC, however, suggest that the closures of enforcement actions aim to reposition the agency toward a more proactive and policy-driven approach.

Read also: Binance and US SEC agree to pause case for 60 days. Resolution in sight.  

 

Photo Credit: Jonathan Ernst/Reuters

 

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Jude Ayua is a policy analyst at CAB. A lawyer, Jude is an associate at Infusion Lawyers where he is a member of the Blockchain & Virtual Assets Group. He is also a member of the Policy & Regulations Committee of the Stakeholders in Blockchain Technology Association of Nigeria (SiBAN). Jude reports and writes on crypto policy and regulations. jude@infusionlawyers.com