Crypto Exchange Gemini Discussing Resolution of $900,000,000 Lawsuit With SEC

The crypto exchange founded by billionaire twins Cameron and Tyler Winklevoss may soon witness the end of its legal dispute with the U.S. Securities and Exchange Commission (SEC) over its now-defunct cryptocurrency asset lending program.

In January 2023, the securities regulator filed a lawsuit claiming that Gemini and cryptocurrency lender Genesis Global Capital violated securities laws through the Gemini Earn program, which allowed participants to lend their crypto assets to earn interest payments.

The SEC filed the suit shortly after Genesis halted withdrawals in November 2022 with approximately $900 million in user funds.

In a letter submitted to the U.S. District Court for the Southern District of New York on Tuesday, Gemini and the SEC jointly requested Judge Edgardo Ramos suspend the deadlines in the case for 60 days to allow the two parties to explore a potential resolution.

“[T]he parties submit that it is in each of their interests to stay this matter while they consider a potential resolution and agree that no party or non-party would be prejudiced by a stay. Further, a stay is in the Court’s and the public’s interest because a resolution would conserve judicial resources.”

The SEC and Gemini also suggested a timeline for when they will give an update on their discussion.

“[T]he parties respectfully request that the Court grant this joint request for a 60-day stay. The parties propose that they will submit a joint status report within 60 days after entry of the stay.”

The development comes as the SEC takes a friendlier approach to crypto. The securities regulator also recently ended its civil lawsuits against US-based digital asset exchanges Coinbase and Kraken.

Generated Image: Midjourney