Gemini and the SEC have reached a resolution in principle to settle the 2023 securities case tied to the Gemini Earn program, and both parties have asked the Southern District of New York to indefinitely stay litigation pending SEC review and commission approval.
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SEC stay requested: litigation paused while the SEC reviews a proposed settlement.
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Agreement covers claims tied to Gemini Earn and related transfers to Genesis Global Capital.
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Genesis previously settled for $21 million; court will receive an updated status by Dec. 15 if unresolved.
Gemini SEC settlement update: Gemini and the SEC reached a resolution in principle; litigation paused pending approval—read the timeline and next steps now.
Almost three years after the SEC filed its complaint about Gemini’s Earn product, Gemini Trust and the SEC notified the Southern District of New York that they reached a resolution in principle and asked the court to stay the case pending SEC review.
What is the Gemini SEC settlement update?
Gemini SEC settlement update: Gemini Trust Company and the U.S. Securities and Exchange Commission filed a joint status report stating they reached a “resolution in principle” in the securities case tied to the Gemini Earn program. The parties requested an indefinite stay of litigation while the SEC reviews the proposed resolution.
How did the Gemini Earn program trigger the SEC complaint?
The SEC’s January 2023 complaint alleged that Gemini and Genesis Global Capital offered unregistered securities via the Earn program between February 2021 and November 2022. The commission said US retail investors transferred “billions of dollars’ worth of crypto assets” into the program with the expectation of interest payments and without required federal registration.
Genesis and Gemini were accused of providing selective disclosures that omitted material information. Genesis later agreed to a $21 million settlement in 2024 for related claims. The recent status filing in the Southern District of New York requests the court pause proceedings while the SEC considers the settlement terms.
Source: SDNY
The securities case against Gemini Trust and Genesis Global Capital began with the SEC complaint in January 2023. The agency alleged the firms engaged in an unregistered offer and sale of securities to U.S. retail investors during the cited period.
The recent court filing, dated 2025-09-15, states that the parties have agreed in principle and have requested an indefinite stay “subject to review and approval” by the commission. If the matter is not resolved, both parties committed to file another status report by Dec. 15.
Why does this matter to investors and the industry?
Resolution of this case will clarify enforcement priorities for crypto lending and yield products in the U.S. A favorable settlement for Gemini could influence how custodians and exchanges design interest-bearing products. Conversely, SEC enforcement actions can prompt stronger disclosure and registration practices across the sector.
Regulatory outcomes also affect market confidence. Gemini’s later IPO activity and public profile mean the case outcome may carry reputational and operational implications beyond the immediate civil claims.
Frequently Asked Questions
Has Gemini settled with the SEC?
Gemini and the SEC have reached a resolution in principle and requested a stay of litigation while the SEC reviews the proposed terms. A final settlement requires commission approval and additional court filings if unresolved by Dec. 15.
What penalties have related parties already paid?
Genesis Global Capital previously agreed to a $21 million settlement in 2024 for related allegations. The Gemini matter remains pending until the SEC completes its review of the resolution in principle.
Key Takeaways
- Stay Requested: The SEC and Gemini asked the SDNY to indefinitely stay litigation while the SEC reviews a proposed resolution.
- Genesis Context: Genesis Global Capital settled for $21 million in 2024 for related claims.
- Next Deadline: Parties will file another status report if unresolved by Dec. 15; commission approval is required for final settlement.
Conclusion
The Gemini SEC settlement update signals a potential close to a major enforcement action tied to the Gemini Earn program, subject to SEC approval. Stakeholders should watch the Southern District of New York docket, SEC communications, and company disclosures for final terms and implementation. For ongoing coverage and analysis, monitor COINOTAG publications and official filings.
