Gemini breathes easy after the SEC loosens its grip on Earn program

The US Securities and Exchange Commission (SEC) has been loosening its grip on crypto regulation since the country set its sights on becoming more crypto-friendly. This time, the Winklevoss twins’ Gemini crypto exchange finally breathed a sigh of relief, as the SEC settled its lawsuit on its Gemini Earn lending program. 

What was the allegation against Gemini?

Gemini Earn was a crypto lending service provided by the Gemini exchange. Investors deposited their crypto assets, and Gemini lent them out. The lending partner of Gemini Eran was Genesis Global Capital. 

However, things went wrong with the Earn service! Geminin had to go through ups and downs due to these reasons:

• In November 2022, Genesis suspended withdrawals or recovery of assets, and users could not take their assets back.
• In 2023, the platform filed for bankruptcy, and the users’ cryptocurrencies were locked up in the Earn program. 
• Gemini agreed to return at least  $1.1 billion to Earn customers following an agreement with the New York Department of Financial Services. 
• Gemini users began receiving distributions from the platform, and reportedly, it had returned nearly $2.18 billion worth of digital assets.

War between the SEC and Gemini

• In early 2023, the SEC sued Gemini and its partner, Genesis, alleging that Earn sold and offered unregistered securities to US customers via the Earn program.
• Additionally, the commission alleged that Gemini failed to provide investors with important information, omitting key limitations and risks associated with investing.
• And now, both teams have come to a resolution to settle the lawsuit related to Gemini Earn.  
• A letter filed in Manhattan federal court stated that the SEC and Gemini lawyers have reached a preliminary agreement to settle the battle; however,  it still requires final approval from the commissioners to become official.

Gemini executes a competitive edge in crypto

Launched in 2014 by Tyler and Cameron Winklevoss, the platform has been at the forefront of crypto, effectively supporting the US President, Donald Trump’s crypto initiatives. It has recently raised $425 million in an Initial Public Offering (IPO), targeting a valuation of up to $3.08 billion in its listing. The Winklevoss twins have also donated $21 million worth of Bitcoin to Trump’s Digital Freedom Fund PAC/Political Action Committee. As the U.S. attempts to create a more crypto-friendly environment, crypto platforms like Gemini are finding new opportunities to grow and attract investors. Moreover, the SEC is easing its scrutiny of crypto firms in the country, reflecting the government’s pro-crypto mission.