Gemini and SEC Reach Preliminary Agreement in Two-Year-Old Legal Battle

Gemini, a cryptocurrency exchange platform, and the U.S. Securities and Exchange Commission (SEC) have reached an agreement in principle to settle their ongoing two-year legal dispute. The disagreement stems from Gemini’s Earn product, a cryptocurrency lending program that was suspended in 2022. The SEC alleges that Gemini and Genesis Global Capital offered unregistered securities through the Earn program. Under the terms of the proposed settlement, Gemini will pay a monetary penalty and take steps to compensate investors affected by the program’s suspension. The agreement still requires approval from a federal court. This preliminary resolution marks a significant milestone in the protracted case, offering hope for the recovery of some lost funds for investors. However, the details of the settlement are still being finalized, and there is no guarantee that the court will approve it.