Gemini and SEC Resolve Crypto Lending Conflict
An important case relating to Gemini's Earn program has been settled in principle by the U.S. SEC and Gemini Trust Company...
Quick overview
- The U.S. SEC and Gemini Trust Company have reached a settlement in principle regarding the Gemini Earn program after nearly three years of legal disputes.
- The case began in January 2023 when the SEC charged Genesis Global Capital and Gemini with selling unregistered securities under the Earn program.
- The settlement could establish a precedent for the regulatory treatment of yield products and crypto loans in the U.S.
- If approved, this agreement may help Gemini regain market share and restore customer trust following the fallout from Genesis' bankruptcy.
An important case relating to Gemini’s Earn program has been settled in principle by the U.S. SEC and Gemini Trust Company after nearly three years of court fights. One of the most highly followed crypto enforcement cases in the US may come to an assumption as a result of this development.
The Case’s Background
The action started in January 2023 when the SEC charged Genesis Global Capital and Gemini of selling unregistered securities under the Earn program.The Users placed cryptocurrency assets under Earn with Gemini which lent them to Genesis in return for interest payments. Gemini kept this arrangement was more similar to a lending product but the SEC contended that it was effectively an unregistered securities sale.
In 2023 Genesis failed locking up over $900 million in customer funds and making matters worse. This led to legal action, bankruptcy and close examination of Gemini’s business strategy.
JUST IN: 🇺🇸 The SEC and Gemini Trust reach an agreement over crypto lending dispute involving the Gemini Earn product, nearly three years after the initial complaint was filed. pic.twitter.com/kgWWJXQLhO
— crypto.news (@cryptodotnews) September 16, 2025
The Settlement Move
The SEC and Gemini jointly submitted a progress update to the U.S. District Court for the Southern District of New York on September 16, 2025. In short the parties acknowledged that they had achieved a “resolution in principle” and requested that the judge postpone all court deadlines until December 15 in order to complete the settlement documentation.
This kind of settlement shows that although the parties have reached a general agreement and the official procedure must still be finished. Gemini has 15 working days to submit a signed settlement offer in accordance with SEC regulations. It will then be reviewed by SEC staff and sent to the Commission in 20 business days. Only if the Commission approves the agreement will it be applicable and if not than action will continue otherwise.
Why this case Matters?
The entire cryptocurrency world has been watching the Gemini Earn controversy closely. The fundamental question at the center of the dispute is whether or not yield products and crypto loans qualify as securities.
The settlement may establish a standard for future regulatory treatment of comparable items if it is accepted. The scope of yield-bearing services’ operations in the United States may be restricted, or they may be subject to more stringent disclosure laws or registration requirements.
Signs of Softer Regulation
The SEC’s recent change in tone is also reflected in the settlement. In certain cryptocurrency cases, the agency began to modify its position earlier in 2025. Gemini cleared in February in a different investigation into possible market manipulation, suggesting that authorities might be enforcing the law more effectively.
What It Means for Gemini
This deal may finally enable the exchange to proceed for Gemini, which Cameron and Tyler Winklevoss co-founded, following years of court pressure. The company recently raised approximately $425 million through its first public offering (IPO) and is attempting to reclaim market share in the United States as rivals provide new services.
Customers affected by Genesis’ bankruptcy still have unanswered questions. The deal does not ensure a quicker recovery of the money that many are currently awaiting repayments.
One of the longest-running legal sagas in cryptocurrency is coming to an end with the Gemini-SEC agreement. If approved, it might offer clarity for upcoming cryptocurrency financing offerings in the US and offer Gemini the opportunity to win back investor and customer trust.
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