The U.S. Securities and Exchange Commission (SEC) and crypto exchange Gemini have jointly requested a 60-day pause in the ongoing lawsuit filed by the SEC, in an effort to explore a potential resolution regarding the exchange’s Gemini Earn program.
In a letter submitted to Judge Edgardo Ramos of the New York federal court on April 1, legal representatives for both the SEC and Genesis Global Capital—another party in the case—asked for a stay on the case and for all deadlines to be extended. The letter emphasized that this delay would benefit both parties as they explore a possible settlement, with no adverse effects expected for any involved or non-involved parties.
The SEC’s case against Gemini and Genesis began in January 2023, accusing the companies of offering unregistered securities through the Gemini Earn program. While Genesis reached a settlement in March 2024, agreeing to pay $21 million to resolve the charges related to the program, the case against Gemini remains unresolved.
The request to pause the lawsuit comes amid a broader trend under the Biden administration, where the SEC has recently dropped several high-profile cases against major crypto companies, including Coinbase, Ripple, and Kraken. Though the specifics of a potential resolution between the SEC and Gemini were not outlined in the letter, both parties expressed a desire to conserve judicial resources and avoid unnecessary litigation.
Gemini, which has already faced significant legal and financial burdens due to SEC investigations, had previously reported that the SEC closed an independent probe into its activities earlier in the year. The exchange’s co-founder, Cameron Winklevoss, criticized the SEC’s actions, claiming that the legal challenges had cost the company tens of millions in legal fees and had a broader negative impact on innovation within the crypto industry.
In recent months, other major companies in the crypto space, such as OpenSea, Crypto.com, and Uniswap, have similarly reported that the SEC has concluded investigations into their operations without bringing forward charges for alleged violations of securities laws.
This development has prompted ongoing speculation about the future direction of SEC regulations on the crypto industry, particularly as the agency reevaluates its approach under the Biden administration. The pause in the case against Gemini may signal a shift towards finding mutually agreeable solutions in place of lengthy litigation.
The court will likely hear updates within the next 60 days, with both parties expected to submit a joint status report following the pause.