Deal in principle may close one of the most high-profile disputes in the U.S. crypto industry
The U.S. Securities and Exchange Commission (SEC) and Gemini Trust Company have reached a “resolution in principle” to settle a securities case tied to the company’s Gemini Earn lending program, according to a court filing in the Southern District of New York.
The case dates back to January 2023, when the SEC alleged that Gemini and its partner Genesis Global Capital engaged in the unregistered offer and sale of securities to U.S. retail investors between February 2021 and November 2022. At the heart of the complaint was Gemini Earn, a product through which users lent crypto assets to Genesis in exchange for yield.
A step toward closure
The filing on Monday noted that both parties requested litigation be indefinitely stayed, pending final approval by the Commission. If unresolved by December 15, another status report will be filed.
The agreement follows the SEC’s earlier $21 million settlement with Genesis in 2024, signaling that the case may soon reach its conclusion. For Gemini, the resolution would remove a cloud that has hung over the exchange for nearly three years.
“Investors lacked material information about the Gemini Earn program that would have been relevant to their investment decisions,” the SEC wrote in its original complaint, underscoring concerns about transparency.
Political and market context
The news comes as Gemini continues to expand its presence on Wall Street. Last week, the company launched its initial public offering, raising $425 million with 15.2 million shares sold on Nasdaq.
The firm’s co-founders, Cameron and Tyler Winklevoss, remain influential voices in both the crypto sector and U.S. politics. Their close ties to the Trump administration — including attendance at the signing of the GENIUS stablecoin bill — have further drawn attention to the regulatory climate surrounding digital assets.
If finalized, the SEC agreement with Gemini could mark a turning point for crypto lending platforms, which have faced intense scrutiny since the market turmoil of 2022. The case highlights the regulator’s ongoing push to ensure greater investor protection while leaving the door open for compliant innovation.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.