The US Securities and Exchange Commission along with crypto exchange Gemini have sought to halt the regulator’s lawsuit concerning the exchange’s Gemini Earn initiative, indicating their intention to discuss a possible resolution.
In an April 1 communication to New York federal court judge Edgardo Ramos, attorneys for the SEC and Genesis requested a 60-day postponement of the case and for all deadlines to be lifted “to permit the parties to investigate a potential resolution.”
“In this instance, the parties assert that it is beneficial for each of them to pause this matter while they consider a possible resolution and concur that no party or non-party would suffer detriment from a pause,” the communication articulates.
The attorneys further commented that a pause would serve the court’s interests since “a resolution would safeguard judicial resources” and suggested that a collective status update be presented within 60 days following the entry of the pause.
The SEC filed charges against Gemini and crypto lending entity Genesis Global Capital in January 2023, claiming they provided unregistered securities via the Gemini Earn program.
In March 2024, Genesis consented to pay $21 million to resolve allegations tied to the lending initiative, yet the enforcement case against Gemini remains unresolved.
Communication from SEC and Genesis Global requesting stay extension. Source: CourtListener
The communication did not detail what a potential resolution might encompass, but the SEC has retracted multiple lawsuits it initiated against crypto firms during the Biden administration, including those against Coinbase, Ripple, and Kraken.
Related: Will new US SEC regulations bring crypto firms onshore?
In February, Gemini announced that the SEC closed a distinct investigation into the company as the regulator retracts its crypto enforcement measures under President Donald Trump.
“The SEC has cost us tens of millions in legal expenditures alone, alongside hundreds of millions in squandered productivity, creativity, and innovation. Undoubtedly, Gemini is not the only one,” stated Gemini co-founder Cameron Winklevoss at that time.
OpenSea, Crypto.com, and Uniswap, among a few others, have similarly reported that the SEC had terminated analogous investigations into their firms regarding alleged securities law infringements.
