The U.S. Securities and Exchange Commission (SEC) and crypto exchange Gemini have jointly requested a 60-day pause in their ongoing lawsuit over the Gemini Earn program.
SEC's Lawsuit Against Gemini
In a letter to Judge Edgardo Ramos, representatives from both sides proposed halting all deadlines to facilitate settlement discussions. The SEC initially filed charges against Gemini and Genesis Global Capital in January 2023, accusing them of offering unregistered securities through the Gemini Earn program. While Genesis reached a $21 million settlement in March 2024, the case against Gemini remains unresolved.
Shift in SEC's Stance
Notably, there has been a recent easing in regulatory actions by the SEC. Gemini disclosed that the SEC had dropped a separate investigation into its business, a move that co-founder Cameron Winklevoss publicly criticized due to the financial and operational toll on the company. 'The SEC cost us tens of millions of dollars in legal bills alone and hundreds of millions in lost productivity, creativity, and innovation,' Winklevoss stated.
Impact on the Crypto Industry
If Gemini reaches a settlement with the SEC, it could set a precedent for how other firms navigate regulatory disputes. The crypto industry has long criticized the SEC's approach, arguing that unclear guidelines stifle innovation and drive companies offshore.
The legal pause provides Gemini with breathing room as it explores ways to resolve its issues with regulators, potentially influencing future corporate actions in the crypto industry.
