Gemini might be nearing the resolution of its legal conflict with the U.S. Securities and Exchange Commission (SEC).
The dispute centers around the now-defunct Gemini Earn program, which allowed users to lend their crypto assets in exchange for interest.
Back in January 2023, the SEC filed a lawsuit against Gemini and crypto lender Genesis Global Capital, alleging that the Gemini Earn program violated securities regulations. The legal action came shortly after Genesis halted withdrawals in November 2022, leaving around $900 million of user funds locked.
This week, both Gemini and the SEC submitted a joint request to the U.S. District Court for the Southern District of New York, asking Judge Edgardo Ramos to pause the case for 60 days. The request aims to give both parties time to discuss a possible settlement.
In the letter, they argued that suspending the case serves everyone’s interests, including the court’s, as it would conserve judicial resources while avoiding unnecessary conflict.
The SEC and Gemini also proposed submitting a joint status report after the 60-day period to update the court on their progress. This potential resolution reflects a softer stance from the SEC toward the crypto sector. Recently, the regulator also ended its civil cases against U.S.-based exchanges Coinbase and Kraken, signaling a shift in its approach.
If the discussions between Gemini and the SEC prove successful, it could mark the end of a long-standing legal battle and offer some relief to the embattled crypto exchange.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/gemini-and-sec-seek-resolution-in-crypto-lending-dispute/