SEC Dismisses Lawsuit Against Gemini’s Earn Product

The U.S. SEC has decided to dismiss its lawsuit against Gemini due to full asset recovery for investors in the Gemini Earn program, as detailed in a recent court filing.

This decision reflects shifting priorities under new SEC leadership, affecting regulatory approaches and crypto market dynamics.

SEC Ends Gemini Lawsuit Amid $900 Million Recovery

The SEC announced the dismissal of the lawsuit against Gemini’s Earn product. This decision came after Gemini Earn investors retrieved full asset value through Genesis Global Capital’s bankruptcy settlements. SEC considers the case no longer valid, attributing this change to asset recovery and shifts within the agency under new leadership. Acting Chair Mark Uyeda had previously paused the lawsuit under his administration.

The dismissal effectively ends lingering concerns over litigation costs and regulatory hurdles for Gemini. The SEC’s focus is moving towards fraud-focused enforcement under the current Chair Paul Atkins. A direct consequence is the significant reduction of overall crypto-related legal actions by 60% since 2025. This change signals a considerable shift from the previous enforcement approach.

“Dismissal in light of the return of 100% of in-kind assets to Gemini Earn investors through the Genesis bankruptcy process, determining little practical benefit in continuing the litigation.” – U.S. District Court, Southern District of New York

Market Confidence Boosted by SEC’s New Fraud Focus

Did you know? Over 10 SEC crypto cases have been dismissed recently, demonstrating a shift in enforcement strategy, similar to Gemini’s case, reflecting a broader regulatory pivot towards fraud prevention under new SEC leadership.

According to CoinMarketCap, Ethereum is valued at $2,956.62 with a market cap of $356.85 billion and a trading volume of $18.41 billion. Ethereum’s price has seen a variation with a 1.35% rise over 24 hours and a 10.37% drop over 7 days as of January 24, 2026.

Coincu research team suggests the dismissal might strengthen confidence in crypto regulation’s adaptability, potentially steering future SEC strategies towards fraud identification and prevention. This pivot could foster greater stability and clarity in the crypto market. Recent trends reflect SEC’s focus on more targeted regulatory actions, potentially encouraging growth and innovation within the crypto industry.