A possible resolution may be on the horizon in the ongoing legal battle between the U.S. Securities and Exchange Commission (SEC) and Gemini regarding the crypto firm’s Earn product.
The two parties filed a joint motion with the U.S. District Court for the Southern District of New York on Tuesday, requesting a 60-day pause in proceedings as they explore a potential settlement.
In January 2023, the SEC initiated legal action against Gemini and lender Genesis Global Capital, claiming that the Gemini Earn product was an unregistered securities offering. By March 2024, Genesis reached a settlement of $21 million concerning its involvement in the program, resolving its part of the lawsuit.
Since Mark Uyeda was appointed as acting SEC chair during Donald Trump’s presidency, the agency has paused or withdrawn more than a dozen enforcement actions related to cryptocurrencies, citing a reevaluation of how securities laws pertain to digital assets.