On April 2nd, COINOTAG reported that the U.S. Securities and Exchange Commission (SEC) and cryptocurrency platform Gemini have submitted a joint plea to the Southern District of New York Federal Court, advocating for a 60-day pause in litigation. This strategic move seeks to allow both parties to negotiate possible resolutions concerning the Gemini Earn program, a cryptocurrency lending initiative. The legal dispute began following the SEC’s January 2023 lawsuit, which accused Gemini of unlawfully offering unregistered securities through its Earn service, involving billions of dollars in digital assets.
Noteworthy is the recent announcement from Gemini co-founder Cameron Winklevoss, indicating that the SEC has concluded its investigation into the exchange without pursuing additional enforcement actions. This notable shift in the SEC’s approach aligns with a broader trend toward a more favorable regulatory climate for crypto under the previous administration. Additionally, since the onset of the 2024 presidential campaign, the SEC has notably reduced legal actions against major crypto firms, including Coinbase and OpenSea. Earlier this year, in January, Gemini reached a settlement regarding false statement allegations with the U.S. Commodity Futures Trading Commission (CFTC), amounting to $5 million.