Gemini Co-Founder Accuses SEC of Political Corruption

IconCryptoNewsTerminal Staff27 May, 2024

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Gemini Co-Founder Accuses SEC of Political Corruption

Gemini co-founder Cameron Winklevoss made a bold accusation against the Securities and Exchange Commission (SEC) in a recent Twitter thread, calling it "politically corrupt." Winklevoss's criticism stems from the SEC's handling of cryptocurrencies, particularly its delay in approving a spot exchange-traded fund (ETF) for Ethereum. He believes that the SEC's actions are influenced by politics, not by the interests of investors. Winklevoss pointed out the difficulty in getting a Bitcoin spot ETF approved in the United States, which required an act of Congress. He contrasted this with the easier approval process for futures-based ETFs, which are considered less risky by the SEC. Winklevoss suggested that the difference in treatment is due to the fact that futures-based ETFs benefit Wall Street firms, while spot ETFs would benefit retail investors. Winklevoss's accusation is not the first time the SEC has been criticized for its approach to cryptocurrencies. Many in the industry believe that the SEC is slow to adapt to the new asset class and that its regulations are stifling innovation. The SEC has defended its actions, arguing that it needs to protect investors from the risks of cryptocurrencies.

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