SEC Reaches Resolution in Principle for Gemini Earn Litigation

The United States Securities and Exchange Commission (SEC) has reached a "resolution in principle" with Gemini, the cryptocurrency exchange operated by Tyler and Cameron Winklevoss.

This resolution aims to conclude litigation involving Gemini Earn, a program entangled in a legal dispute with Genesis Global Capital.
A court filing submitted to Judge Edgardo Ramos indicates both Gemini and the SEC have agreed on a settlement, pending Commission approval.
Gemini Earn allowed customers to lend assets to Genesis for up to 7.4% APY. The program was disrupted when Genesis halted withdrawals due to exposure to bankruptcies, affecting Gemini's clients.
The New York State Department of Financial Services (NYDFS) ordered Gemini to pay a $1.1 billion fine to settle customer claims.
The SEC alleged that Gemini Earn involved unregistered securities, which both Genesis and Gemini contested, filing for the dismissal of the SEC's lawsuit.

Regulatory Shifts

The SEC's current approach shows a shift towards more crypto-friendly policies under new leadership.
Efforts are underway to enhance collaboration between the SEC and the Commodity Futures Trading Commission (CFTC) for pro-crypto regulatory changes.
The goal is to harmonize regulations among US market regulators to support digital asset adoption.