- SEC, Gemini request 60-day stay to explore settlement over Gemini Earn lawsuit.
- SEC’s softened approach under Trump sparks settlement talks with Gemini.
- Gemini faces mounting legal challenges despite the SEC’s regulatory shift.
The U.S. Securities and Exchange Commission (SEC) and the Gemini Trust Company have jointly filed to request for a 60-day stay of proceedings in their existing litigation to ascertain whether resolution mechanisms can be offered. The request, made on April 1 before the U.S. District Court for the Southern District of New York, would halt all deadlines pending more negotiations.
Legal Motion Targets Potential Settlement
According to a report by CryptoPotato Official, the SEC and Gemini filed the motion as part of efforts to settle claims surrounding Gemini Earn, a crypto lending program the SEC alleged operated without proper registration.
The regulator initially filed the lawsuit in January 2023 against Gemini Trust and Genesis Global Capital, accusing them of unlawfully raising billions through Gemini Earn without registering it as a securities offering.
The lawsuit emerged amid broader regulatory scrutiny under the Biden administration. Besides, Gemini previously agreed to return $2.18 billion to affected customers through a separate settlement with New York regulators. The SEC and Gemini’s joint request indicates a possible resolution, but neither party disclosed whether this would result in a settlement, dismissal, or other outcome.
Broader Crypto Regulatory Shift
SEC changed its approach to cryptocurrency enforcement after Donald Trump won the presidency in January of 2025. Interestingly, the regulator just dropped charges against leading cryptocurrency exchanges like Coinbase, Kraken, and OpenSea. The shift follows a wave of regulation activity under former SEC Chair Gary Gensler when various crypto businesses had been in violation of the law.
SEC and Gemini will file a joint status report within 60 days if the motion is granted. Genesis, which is also a partner in the Gemini Earn program, had resolved its portion of the lawsuit in March 2024 by agreeing to pay a fine of $21 million. Gemini continues to deny responsibility for wrongdoing regarding the allegations.
Ongoing Industry Legal Battles
Even though the regulatory approach of the SEC has been relaxed since the Trump administration’s onset, Gemini continues to bear immense legal pressures. Last month, the company reached a $50 million settlement with New York’s attorney general on Gemini Earn and paid $5 million to the Commodity Futures Trading Commission for reportedly making false statements.
The SEC’s willingness to settle with Gemini through negotiations reflects the fluidity of crypto regulation in the US. As the regulatory landscape keeps changing, both parties appear willing to reach a satisfactory settlement.
