The U.S. Securities and Exchange Commission (SEC) and crypto exchange Gemini have requested to pause the litigation over the Gemini Earn program to discuss a potential resolution.
Motion to Pause Litigation
On April 1, lawyers for the SEC and Genesis submitted a request to a New York federal court to pause the case for 60 days, allowing the parties to explore a potential resolution. The letter asserts that the stay is in the interests of both parties and would conserve judicial resources.
Background of the Dispute
The SEC sued Gemini and crypto lending firm Genesis Global Capital in January 2023, claiming they offered unregistered securities through the Gemini Earn program. In March 2024, Genesis agreed to pay $21 million in a settlement related to their lending program, while the case against Gemini remains unresolved.
Impact on the Industry
Amid SEC's regulatory pressures, several crypto firms such as OpenSea and Crypto.com have reported similar investigations have been closed without enforcement actions by the SEC, highlighting a shift in regulatory focus and the companies' efforts to comply and innovate.
The litigation pause is expected to allow SEC and Gemini to negotiate potential resolutions, influencing the future landscape of cryptocurrency regulation.
