SEC and Gemini Request 60-Day Pause to Explore Settlement in Earn Program Case

TLDR

• SEC and Gemini have jointly requested a 60-day pause in their lawsuit to explore a potential resolution
• The original lawsuit filed in January 2023 alleged Gemini Earn program offered unregistered securities
• Genesis already settled related charges for $21 million in March 2024
• This pause follows a trend of the SEC easing crypto enforcement since Trump took office
• Several other crypto companies have recently had SEC investigations closed

The Securities and Exchange Commission (SEC) and cryptocurrency exchange Gemini have jointly asked a New York federal court to pause their ongoing legal battle for 60 days. The request, submitted in an April 1 letter to Judge Edgardo Ramos, aims to give both parties time to “explore a potential resolution” to the case involving Gemini’s Earn program.

The joint letter states that pausing the case would serve the interests of both parties. It adds that “a resolution would conserve judicial resources” and notes that “no party or non-party would be prejudiced by a stay.” If granted, the parties would submit a joint status report within 60 days.

Case Background

The SEC filed the lawsuit in January 2023. The regulator alleged that Gemini and crypto lending firm Genesis Global Capital offered unregistered securities through the Gemini Earn program.

The program allowed customers to lend crypto assets including Bitcoin to Genesis. In return, they received interest payments. Gemini took a fee as high as 4.29% for facilitating these transactions.

Genesis halted customer withdrawals in November 2022. This happened the same month as the collapse of Sam Bankman-Fried’s FTX cryptocurrency exchange. Genesis later filed for bankruptcy in January 2023.

At the time of the bankruptcy filing, Genesis held about $900 million in assets. These belonged to roughly 340,000 Gemini Earn customers who could not access their funds.

Recent Developments

While the case against Gemini remains ongoing, Genesis agreed to pay $21 million to settle charges related to the lending program in March 2024. Genesis did not admit wrongdoing as part of this settlement.

Gemini has denied any wrongdoing in the case. The exchange is run by billionaire twins Tyler and Cameron Winklevoss, who Forbes magazine estimates are worth $3 billion each.

The letter does not specify what a possible resolution might look like. Options could include a settlement, the SEC dropping the case, or some other outcome.

Changing Regulatory Environment

This potential resolution comes amid a changing regulatory landscape for cryptocurrency in the United States. The SEC has eased its oversight of the crypto industry since Donald Trump became president in January 2025.

In February, Gemini announced that the SEC had closed a separate investigation into the firm. Cameron Winklevoss commented on this development saying, “The SEC cost us tens of millions of dollars in legal bills alone and hundreds of millions in lost productivity, creativity, and innovation.”

The twins’ exchange isn’t the only crypto company seeing relief from regulatory pressure. The SEC has recently ended civil lawsuits against several major players in the industry.

These include cases against crypto exchanges Coinbase and Kraken. The regulator also agreed to settle a case against Ripple Labs over the unregistered sale of securities.

Industry-Wide Pattern

The potential resolution of the Gemini case fits into a broader pattern of regulatory easing. OpenSea, Crypto.com, and Uniswap have all recently reported that the SEC closed probes into their operations.

These investigations were examining alleged breaches of securities laws. The closure of these probes suggests a shift in the SEC’s approach to crypto regulation under the Trump administration.

The Winklevoss twins were among industry leaders who participated in the White House Crypto Summit in March 2025. This event highlighted the administration’s more supportive stance toward the cryptocurrency sector.

The case is officially listed as SEC v Gemini Trust Co et al, U.S. District Court, Southern District of New York, No. 23-00287. Both parties are now awaiting the court’s decision on their request for a 60-day pause.