Nikolas Sargeant
The U.S. Securities and Exchange Commission and Gemini Trust Company have reached a "resolution in principle" to settle their long-running securities dispute, according to a Monday court filing in the Southern District of New York. The agreement marks a significant step toward closing a case that began with SEC allegations in January 2023 that both Gemini and Genesis Global Capital engaged in unregistered securities offerings to U.S. retail investors.
The original complaint centered on Gemini's Earn Program, which operated between February 2021 and November 2022. The SEC alleged that investors sent crypto assets to Genesis through Gemini's platform with expectations of earning interest, constituting an unregistered securities offering that raised billions of dollars primarily from retail investors. The commission argued that investors lacked crucial material information that would have informed their investment decisions under federal securities laws.
The settlement comes as the final piece of the regulatory puzzle, following Genesis's separate $21 million settlement with the SEC in 2024. Earlier this year, the SEC under acting chair Mark Uyeda indicated it would not pursue enforcement action against Gemini in a related investigation, signaling the agency's shift toward resolution rather than prolonged litigation.
The timing of this agreement coincides with Gemini's recent initial public offering, which raised $425 million on Friday, and the continued influence of Gemini co-founders Cameron and Tyler Winklevoss in crypto policy circles. The twins maintain close ties with the Trump administration and were reportedly involved in discussions about key regulatory appointments, highlighting the evolving relationship between crypto companies and federal oversight as the industry moves toward greater regulatory clarity.
