- The SEC and Gemini are seeking a 60-day halt in their lawsuit over Gemini Earn, with no clarity on a possible settlement.
- The crypto company faces more case removals and settlements, reflecting regulatory changes under Trump.
Gemini Trust and the United States Securities and Exchange Commission (SEC) jointly submitted a motion for a 60-day stay of their suit against the Gemini Earn program. The soon-to-be lawsuit, launched in January 2023, deals with the issue of the complaint that Gemini and Genesis Global Capital sold billions of dollars in securities without classifying their lending program as a registered securities offering.
The petition was filed on April 1, 2025, in the United States District Court for the Southern District of New York. The motion is a two-month extension of all deadlines to facilitate further negotiations between the two parties. The filing does not specify whether this delay will lead to settlement, dismissal of the action, or another conclusion.
This is among a new generation of crypto regulations. The SEC has just remade its strategy, as it dismissed or settled various headline-grabbing cases in recent months.
Background on the Gemini Earn Case
The Securities and Exchange Commission (SEC) in January 2023 sued Gemini and Genesis Global Capital on charges they illegally sold and offered securities under the guise of the Gemini Earn program. Under the scheme, customers were able to borrow their cryptocurrency holdings such as Bitcoin to Genesis for interest payment and for up to 4.29% payment by Gemini.
The crisis began when Genesis faced a financial downturn, followed by abruptly freezing withdrawals in November 2022, which escalated into its bankruptcy announcement in early 2023. This news left approximately 340,000 customers of Gemini Earn with no possibility of withdrawing $900 million in assets, prompting the Securities and Exchange Commission (SEC) to intervene.
Since then, Genesis and Gemini have had numerous legal disputes and settlements. Genesis settled with the SEC in March 2024 to pay a $21 million fine as part of its Chapter 11 bankruptcy filing. The settlement did not involve an admission of misconduct by Genesis.
Regulatory Trends and Crypto Industry Impact
Gemini has already resolved some of its regulatory differences. In another agreement with New York regulators, the exchange promised to pay back $2.18 billion to impacted customers. Also, in January 2025, prior to Donald Trump becoming president, Gemini resolved a lawsuit with the Commodity Futures Trading Commission (CFTC) by paying a $5 million fine.
This new call for a halt comes as the SEC increasingly moves away from its hardline position on crypto regulation. Earlier this year, the agency dismissed civil lawsuits against large exchanges Coinbase and Kraken. The SEC also partially settled its years-long case against Ripple Labs for selling unregistered securities, a sign of more flexibility.
Under Trump’s rule, most in the crypto community expect more favorable regulatory policies. Major industry players such as Tyler and Cameron Winklevoss, Gemini co-founders, have been ardent supporters of Trump’s pro-crypto position. Both contributed the maximum legal value of $844,600 to his 2024 presidential run.
As the SEC and Gemini pause temporarily, the future of the Gemini Earn case is unclear. Whether the case will settle or proceed in court, the ruling could establish precedent for how crypto lending programs are regulated in the future.
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