The U.S. Securities and Exchange Commission (SEC) and Gemini Trust Company have reached a preliminary agreement in a securities case, marking a significant development in the case against their market actions.
Updates from SEC and Gemini
On Monday, the SEC and Gemini filed a status update in the U.S. District Court for the Southern District of New York, informing that they had reached a 'resolution in principle.' In their statement, the parties indicated that pending review and approval by the SEC, they requested to stay all litigation in this civil case.
Background and Case Details
The securities case against Gemini Trust and Genesis Global Capital began with a complaint filed by the SEC in January 2023. It was alleged that Genesis and Gemini 'engaged in an unregistered offer and sale of securities' to U.S. retail investors between February 2021 and November 2022. The commission charged that the companies raised 'billions of dollars' worth of crypto assets from retail investors without registering with the regulator.
Gemini's Ties to Trump's Policies
Gemini co-founders Cameron and Tyler Winklevoss have been financial and personal supporters of U.S. President Donald Trump during his 2024 campaign and have maintained close ties to the White House. They were present during the signing of the GENIUS stablecoin bill and reportedly urged Trump regarding the nomination of Brian Quintenz as chair of the U.S. Commodity Futures Trading Commission.
Thus, the preliminary agreement between the SEC and Gemini represents a significant step toward resolving legal issues, raising questions about the future of regulation and the company's ties to politics.
