SEC and Gemini Request 60-Day Pause to Discuss Resolution
The United States Securities and Exchange Commission (SEC) and cryptocurrency exchange Gemini have jointly asked a New York federal court to temporarily pause an ongoing lawsuit. Both sides want a 60-day break to explore the possibility of resolving the case without going to trial.
In a letter dated April 1, lawyers representing both the SEC and Gemini informed Judge Edgardo Ramos of their intention to put the case on hold. The letter explains that both parties believe it is in their best interest to pause the case for 60 days. They said this would give them time to discuss a potential settlement.
The letter also states that pausing the case would not harm any party and would help the court by saving time and resources. The lawyers proposed submitting a joint status report after 60 days to update the judge on the progress of their discussions.
The lawsuit, filed by the SEC in January 2023, centers around Gemini’s now-suspended Gemini Earn program. This program allowed users to earn interest by lending their cryptocurrencies through the platform. However, the SEC accused Gemini and its partner, Genesis Global Capital, of offering unregistered securities—meaning the program did not meet federal legal requirements.
In March 2024, Genesis agreed to pay $21 million to settle the charges brought against it. But Gemini has yet to resolve its part of the case.
SEC Has Reduced Crypto Lawsuits Since Trump Took Office
The letter did not provide details about what kind of settlement Gemini and the SEC might reach. However, the request comes during a noticeable shift in the SEC’s approach to cryptocurrency regulation. Since President Donald Trump returned to office, the SEC has been closing or dropping several enforcement cases against crypto companies.
Major crypto firms like Coinbase, Ripple, and Kraken have seen lawsuits or investigations against them withdrawn or settled. Gemini itself recently announced in February that the SEC closed a separate investigation into the company.
Gemini co-founder Cameron Winklevoss has been openly critical of the SEC’s enforcement actions. He stated that the SEC’s legal actions cost Gemini “tens of millions of dollars” in legal fees and caused “hundreds of millions” in lost productivity and innovation.
Gemini is not alone. Companies such as OpenSea, Crypto.com, and Uniswap also reported that the SEC recently ended investigations into their operations.