Federal Agencies will be used against Crypto: Gemini Co-Founder
Amid the U.S. Securities and Exchange Commission (SEC) dropping cases against major cryptocurrency exchanges and firms under the new Trump administration, Gemini exchange co-founder Cameron Winklevoss has expressed his concern about lawmakers using federal agencies to target the crypto industry.
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In a tweet posted on his official X account, Winklevoss stressed the point that the crypto industry requires rules as a firewall to protect themselves against overreaching lawmakers and federal agencies.
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“Crypto needs rules, not because investors lack protection but because builders and companies lack protection — we need a firewall against federal regulatory attacks. This should be a major goal of any future legislation put forth,” said Winklevoss.
SEC under Heavy Criticism
The SEC, helmed by Gary Gensler under former President Joe Biden, had come under heavy criticism from the crypto industry for their heavy-handedness and overtly strict approach despite the lack of a clear regulatory framework in the U.S. Later, President Donald Trump, during his 2024 presidential election campaign, had vowed to fire Gary Gensler and usher in a new era in the SEC, with a much friendlier approach towards the crypto industry.
And true to his words, under the new Trump administration, the SEC has dropped cases against Coinbase, Kraken, Cumberland DRW, Hex founder Richard Heart, as well as stalled the Binance case. Other exchanges and firms are also hopeful that their ongoing litigation with the SEC will also reach a mutually accepted closure.
Senator Elizabeth Warren's Criticism
Meanwhile, Gemini co-founder Cameron also criticized Senator Elizabeth Warren (known for her anti-crypto sentiments) for allegedly overreaching and weaponizing federal agencies against the industry.
“If Senator Warren was able to weaponize the SEC to DDOS crypto with enforcement actions, then we should assume that she will try to weaponize the CFTC or any other financial regulatory agency she can in the future against crypto. Just look at what she did with the CFPB against banks and fintechs,” said Cameron.
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Lastly, Cameron also asked the industry to develop a “zero trust” model where they should not trust the lawmakers and assume that any and every federal agency can be weaponized against crypto.
Also Read: Explained: 4 Big Cases SEC dropped against Crypto under Trump
