The Gemini Trust Co. cryptocurrency exchange is nearing a resolution in its lawsuit with the SEC, which is related to the Gemini Earn program.
Potential Resolution in Gemini Earn Case
The lawsuit alleges that Gemini failed to register its Gemini Earn program before offering it to retail investors. The SEC claims that Gemini and Genesis Global Capital unlawfully raised billions through the program, which allowed customers to lend crypto assets in exchange for interest, with Gemini taking a fee up to 4.29%.
Pause in Legal Proceedings
Gemini and the SEC filed a joint letter in Manhattan federal court requesting a 60-day pause on case deadlines to explore a potential resolution. The letter does not specify whether this could involve a settlement, the agency dropping the case, or another outcome. Both Gemini and SEC lawyers have not yet commented.
SEC's Shift in Crypto Approach
Since Donald Trump took office in January, the SEC has relaxed its oversight of the cryptocurrency industry. Recently, the regulator ended civil lawsuits against Coinbase and Kraken and agreed to a settlement with Ripple Labs. The Winklevoss brothers each donated $844,600 to Trump's 2024 campaign.
Gemini and the SEC continue working towards resolving the dispute, while the SEC modifies its approach to cryptocurrency regulation under the new administration.
