The U.S. Securities and Exchange Commission (SEC) and cryptocurrency exchange Gemini have jointly requested a 60-day pause in the regulator’s lawsuit over the Gemini Earn program. The move suggests that both parties are exploring a potential resolution to the legal dispute.
In an April 1 letter to U.S. District Judge Edgardo Ramos, attorneys for the SEC and the exchange asked for a temporary stay on the case, including the suspension of all deadlines. The letter stated that both sides believe a resolution is in their best interests and that no parties or third parties would be adversely affected by the pause.
“A resolution would conserve judicial resources,” the letter noted, adding that a joint status report would be submitted within 60 days following the court’s approval of the stay.
Background on the SEC Lawsuit Against Gemini
The SEC filed its lawsuit against the company and Genesis Global Capital in January 2023 over the Gemini Earn program, which allowed customers to lend cryptocurrency assets, including Bitcoin, to Genesis in exchange for interest payments. Gemini took a fee as high as 4.29% on these transactions.
Genesis halted withdrawals in November 2022, the same month Sam Bankman-Fried’s FTX cryptocurrency exchange collapsed, and filed for bankruptcy two months later. At the time, Genesis held $900 million in assets from approximately 340,000 Gemini Earn customers.
The SEC alleged that, in creating Gemini Earn, Genesis and Gemini bypassed disclosure requirements designed to protect investors. In March 2024, Genesis reached a $21 million settlement with the SEC over charges related to the lending program.
Regulatory Shifts Under the Trump Administration
Since Donald Trump assumed office in January 2025, the SEC has taken a more lenient stance on cryptocurrency regulation. The agency has recently dropped civil lawsuits against major crypto exchanges Coinbase and Kraken and settled a case against Ripple Labs over unregistered securities sales. Many crypto advocates have welcomed the shift, expecting more industry-friendly policies compared to the stricter regulatory environment under the Biden administration.
Notably, billionaire Gemini co-founders Tyler and Cameron Winklevoss, each with an estimated net worth of $3 billion according to Forbes, have shown strong support for Trump. Each brother donated the maximum allowable $844,600 to Trump’s 2024 reelection campaign.
More: SEC May Remove “Crypto Custody Rule”
Gemini’s $1.1 Billion Settlement With New York Regulators
In a separate legal matter, the company recently reached a settlement with New York regulators, agreeing to return at least $1.1 billion to customers impacted by the collapse of the Gemini Earn program. The agreement aims to compensate users who were unable to withdraw their funds due to Genesis’s bankruptcy.
What’s Next?
If the court grants the requested stay, Gemini and the SEC will have until early June 2025 to negotiate a potential settlement. Industry observers will closely watch the outcome, as it could set a precedent for future regulatory actions in the cryptocurrency sector.
