Recent regulatory shifts have led to a reevaluation of cases involving major companies such as SEC, Gemini, and Coinbase. We explore recent developments and their impact on the industry.
Gemini and SEC Consider Settlement
The US Securities and Exchange Commission (SEC) and crypto exchange Gemini have requested a pause in their lawsuit regarding Gemini’s Earn program. In a letter submitted on April 1 to Judge Edgardo Ramos, both parties asked for a 60-day hold to explore a potential resolution. They also proposed suspending all related deadlines and submitting updates within 60 days.
The lawsuit, filed in January 2023, accused Gemini and Genesis of offering unregistered securities. While Genesis reached a $21 million settlement with the SEC in March 2024, the case against Gemini remains unresolved. The SEC's recent actions reflect a broader regulatory shift under President Donald Trump's administration.
Kentucky Drops Lawsuit Against Coinbase
Kentucky's financial regulator dropped its lawsuit against Coinbase related to its staking rewards program, joining Vermont and South Carolina. This came after the SEC decided to dismiss its federal case against Coinbase. Paul Grewal, Coinbase’s chief legal officer, called for federal laws to standardize market regulation. Despite this, seven states continue legal actions against Coinbase, including Alabama and California.
Coinbase Experiences Worst Quarter Since FTX Crash
Despite legal victories, Coinbase reported its worst quarterly performance since the FTX collapse, with its stock falling almost 30%. Following the FTX debacle, the company faced major market challenges and loss of confidence. Coinbase is expected to generate approximately $750 million from transaction activities in Q1 2025.
Current changes in US cryptocurrency regulation indicate a potential relaxation of the approach and review of lawsuits, which may shape future regulatory strategies.
