- The SEC and Gemini have jointly requested a 60-day pause in their lawsuit to explore a potential resolution over the Gemini Earn product.
- Genesis Global Capital already settled its part of the case with a $21 million payment in March 2024.
- This potential resolution comes as the SEC under Acting Chair Mark Uyeda has halted or dropped numerous crypto enforcement actions since President Trump returned to office.
The U.S. Securities and Exchange Commission (SEC) and crypto company Gemini have requested a temporary pause in their legal battle as they work toward a possible resolution of their dispute over Gemini’s Earn product. According to court documents filed Tuesday, both parties have submitted a joint request to the U.S. District Court for the Southern District of New York asking for a 60-day pause in proceedings.
Background of the Legal Battle
The SEC filed the lawsuit in January 2023 against Gemini and lender Genesis Global Capital, claiming their Gemini Earn product constituted an unregistered securities offering. This legal action has been ongoing for over a year, with Genesis having already resolved its part of the case. In March 2024, Genesis finalized a $21 million settlement with regulators regarding its role in the program.
The joint request for a pause indicates that after more than 18 months of litigation, the parties may be approaching a settlement agreement that would end the lawsuit entirely. This development represents a significant shift in what has been a contentious legal battle between the crypto exchange and the federal regulator.
Changing Regulatory Landscape
This potential resolution comes amid broader changes in the SEC’s approach to crypto regulation. Since President Donald Trump returned to office and appointed Mark Uyeda as acting SEC chair, the regulatory agency has halted or dropped more than a dozen crypto-related enforcement actions.
The SEC has cited a need to reassess how securities laws apply to digital assets as the reason for pulling back on these enforcement efforts. This shift in regulatory approach appears to have created an environment more conducive to resolving ongoing cases like the one against Gemini.
If approved by the court, the 60-day pause would give both parties time to finalize terms of a potential settlement, potentially bringing closure to one of the more prominent crypto enforcement actions initiated during the previous administration.
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