The U.S. Securities and Exchange Commission and Gemini Trust have jointly requested a 60-day stay in their ongoing lawsuit to explore a potential resolution.
Request for a Pause in Legal Proceedings
The joint motion was submitted to the U.S. District Court for the Southern District of New York on April 1. It aims to allow for further discussions while the case is postponed. The SEC and Gemini will provide a joint status update within 60 days of the request being approved.
Case Background
In January 2023, the SEC filed its first lawsuit against Gemini Trust and Genesis Global Capital, claiming they had unlawfully raised billions of dollars through the Gemini Earn program without registering it as a securities offering. As part of a separate settlement, Gemini agreed to return $2.18 billion to affected customers.
Shift in Regulatory Approach
Since President Donald Trump took office in January, there has been a major shift in regulatory enforcement. The SEC, under acting Chair Mark Uyeda, has withdrawn legal threats against companies like Robinhood and Uniswap and dropped lawsuits against major cryptocurrency companies such as Coinbase and Kraken. This shift in approach has been well-received by industry players.
The request for a pause in the SEC and Gemini legal dispute highlights a mutual desire to find potential settlement and improve the regulatory environment for the crypto industry.
