TLDR
- Gemini, SEC Reach Deal to End Gemini Earn Case as IPO Lifts Market Value
- Gemini Settles SEC Earn Dispute, Shares Jump After $425M Nasdaq Debut
- Winklevoss’ Gemini Resolves SEC Earn Case, IPO Boosts $3.3B Valuation
- SEC Softens Crypto Stance as Gemini Earn Settlement Clears Legal Cloud
- Gemini Ends SEC Fight on Earn Program, Investors Cheer IPO Momentum
Gemini Trust Company has reached a resolution with the U.S. Securities and Exchange Commission(SEC) over its crypto lending program, Gemini Earn. The exchange, founded by Tyler and Cameron Winklevoss, faced allegations of failing to register the offering. The agreement, if approved, will fully resolve the legal dispute that began in January 2023.
Gemini Earn Settlement Marks End of Legal Standoff
The SEC and Gemini jointly informed the U.S. District Court that they had resolved the issue in principle. They requested that all court deadlines be paused until December 15 to finalize documents. This filing indicates the agency’s internal review is now the final step before full resolution.
The case centered on Gemini Earn, which allowed users to lend crypto assets for interest. Genesis Global Capital, the lending partner, halted withdrawals in November 2022. At the time, it held $900 million from over 340,000 Gemini Earn participants.
The SEC initially charged Gemini and Genesis for offering unregistered securities through Gemini Earn. The regulator argued the program lacked essential disclosures required by federal law. Genesis previously paid a $21 million fine to settle, without admitting wrongdoing.
Gemini’s IPO Boosts Market Value Amid Legal Resolution
Just days before the court filing, Gemini completed a $425 million IPO. The exchange debuted on Nasdaq at $28 per share and closed 16% higher at $32.52. This market performance valued Gemini at roughly $3.3 billion.
The IPO’s timing positioned Gemini well despite the ongoing Gemini Earn case. The settlement news gave further momentum to Gemini’s public debut. Investors reacted positively, viewing the resolution as clearing a major overhang.
Gemini provides trading, custody, and crypto services. Gemini Earn had been one of its highest-profile offerings before the collapse of its partner Genesis. The program once promised annual yields of up to 7.4%.
SEC Shifts Stance Under New Leadership
The SEC has softened its approach to digital assets since January. President Donald Trump appointed Paul Atkins, a known crypto supporter, to lead the agency. Under Atkins, the SEC launched “Project Crypto” to revise regulatory frameworks.
In recent months, the SEC has dropped lawsuits against other crypto firms like Coinbase and Binance. This shift suggests a more lenient stance on enforcement. The Gemini Earn case may be one of the final major legacy actions.
Gemini continues to deny wrongdoing but moved to resolve the case efficiently. The settlement avoids prolonged litigation and regulatory uncertainty. For Gemini, concluding the Gemini Earn lawsuit signals a pivot toward future expansion.
Gemini Earn remains a pivotal chapter in the exchange’s history. While the program collapsed alongside Genesis, it reshaped regulatory oversight of crypto lending. The resolution now allows Gemini to move forward with greater legal clarity.
