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3w ago

SEC and Gemini Seek 60-Day Pause in Legal Dispute Over Crypto Lending Program

The joint request aims to explore a potential resolution in the high-profile Gemini Earn lawsuit as the SEC adopts a less aggressive regulatory approach.

Cameron Winklevoss speaks at the White House Crypto Summit at the White House in Washington, D.C., U.S., March 7, 2025. REUTERS/Evelyn Hockstein/File Photo
Tyler Winklevoss speaks at the White House Crypto Summit at the White House in Washington, D.C., U.S., March 7, 2025. REUTERS/Evelyn Hockstein/File Photo

Overview

  • The SEC and Gemini Trust have jointly filed a motion to pause their legal case for 60 days to explore a potential resolution, as stated in an April 1 court filing.
  • The lawsuit, filed in January 2023, alleges that Gemini failed to register its Gemini Earn program before offering it to retail investors.
  • Genesis Global Capital, which partnered with Gemini on the program, filed for bankruptcy in January 2023 after halting withdrawals in November 2022, holding $900 million in customer assets.
  • Under acting Chair Mark Uyeda, the SEC has shifted to a more collaborative regulatory stance, recently dropping or settling cases against other major crypto firms like Coinbase and Kraken.
  • The filed motion does not specify whether the resolution would involve a settlement, dismissal, or another agreement, with a status update expected after the proposed 60-day pause.