Gemini and SEC Reach Settlement Over Gemini Earn Program

Key Insights

• Gemini and SEC settle on the Gemini Earn Program lawsuit

• The SEC sued Gemini in 2023, claiming the company failed to register its Gemini Earn lending program.

The long-running legal battle between the U.S. Securities and Exchange Commission (SEC) and Gemini Trust, the crypto exchange founded by billionaire twins Tyler and Cameron Winklevoss, appears to be nearing its conclusion.

In a filing submitted in Manhattan federal court, lawyers for both sides confirmed that they have settled the principle. If approved, the deal would fully resolve the SEC’s lawsuit against Gemini over its now-defunct Gemini Earn program.

The parties have asked Judge Edgardo Ramos to pause all deadlines in the case and allow them until December 15 to finalize the paperwork.

SEC and Gemini lawsuit

The SEC first sued Gemini in January 2023, claiming the company failed to register its Gemini Earn lending program before offering it to retail investors. Under the program, customers could lend bitcoin and other crypto assets to Genesis Global Capital in exchange for interest.

Gemini charged fees as high as 4.29% on the service, which attracted hundreds of thousands of users. However, problems emerged in November 2022 when Genesis halted withdrawals during the crypto market crisis triggered by the collapse of Sam Bankman-Fried’s FTX exchange. At the time, Genesis held around $900 million of assets from 340,000 Gemini Earn customers.

Two months later, Genesis filed for bankruptcy. The fallout left many Gemini Earn users unable to access their funds, prompting regulatory scrutiny.

Settlement Details and Previous Developments

Genesis previously agreed to settle with the SEC by paying a $21 million fine, without admitting wrongdoing. Gemini, for its part, has denied any wrongdoing throughout the case but now appears ready to put the matter to rest.

The news of the settlement comes just days after Gemini successfully raised $425 million in its initial public offering (IPO), valuing the New York-based exchange at approximately $3.3 billion. Gemini’s shares have been trading above their IPO price, closing at $32.52 on Monday 16% higher than the initial $28 price.

Broader Context

The Gemini Earn case highlights the regulatory challenges facing crypto platforms that offer yield products resembling securities. While the SEC under the Biden administration was known for aggressive enforcement, the agency has since scaled back oversight following Donald Trump’s return to the presidency in January.

Still, the SEC maintains that programs like Gemini Earn should comply with disclosure rules designed to protect retail investors.

Winklevoss Twins’ Fortune and Next Steps

Tyler and Cameron Winklevoss, both 44 years old, remain two of the most prominent figures in crypto. According to Forbes, each twin is worth an estimated $4.6 billion.

If approved, the settlement could allow Gemini to turn the page on its biggest regulatory battle to date. With fresh IPO capital and a resolved legal overhang, the exchange may now focus on rebuilding trust with customers and expanding its role in the evolving digital asset industry.