SEC and Gemini Submit Joint Motion Seeking Potential Resolution of Crypto Lending Lawsuit

BlockBeats News, April 2nd, according to TheBlock report, yesterday the U.S. Securities and Exchange Commission (SEC) and the cryptocurrency exchange Gemini submitted a joint letter to the Southern District of New York federal court requesting the judge to approve a 60-day litigation pause. During this window, both parties will explore potential resolutions to the lawsuit regarding Gemini Earn, a cryptocurrency lending product. The case originated from a lawsuit filed in January 2023, where the SEC accused Gemini of illegally selling unregistered securities through the Earn project, raising billions of dollars worth of cryptocurrency assets. A month before this motion was submitted, Gemini co-founder Cameron Winklevoss revealed that the SEC had formally notified the end of the investigation into the exchange and would not pursue enforcement actions.

This change in the SEC's stance is seen as a continuation of the Trump administration's cryptocurrency-friendly policies. Since the 2024 presidential election, the SEC has gradually dismissed lawsuits against crypto companies such as Coinbase, OpenSea, Immutable, and halted multiple investigations. In early January this year, Gemini settled false statement charges with the U.S. Commodity Futures Trading Commission (CFTC) for $5 million.