In recent developments within the cryptocurrency landscape, Gemini, the prominent exchange established by the Winklevoss twins, has struck a deal with the US Securities and Exchange Commission (SEC). This agreement addresses concerns surrounding its crypto lending initiative, highlighted through the Gemini Earn program. The confirmation of this settlement emerged on Monday via documentation submitted in a federal court in Manhattan.
Resolution of SEC’s Legal Action Against Gemini
The SEC, which has faced criticism in the past for its aggressive enforcement strategies aimed at significant players in the digital currency sector, previously accused Gemini of inadequately registering its Earn program. This program enabled users to lend their Bitcoin (BTC) and various other cryptocurrencies to Genesis Global Capital in return for interest accrual.
Allegations in the lawsuit suggested that both Gemini and Genesis circumvented essential disclosure regulations meant to safeguard investors. In January 2023, legal actions were initiated by the SEC against these companies, holding them accountable for the purported breaches.
Genesis has since entered bankruptcy proceedings and opted to settle its grievances with the SEC by paying a $21 million fine without admitting any infringement on the law. Throughout this process, Gemini has steadfastly denied any allegations of wrongdoing concerning its Earn program.
According to reports, this settlement, which awaits SEC approval, seeks to “fully resolve” the legal issues related to Gemini Earn. Legal representatives have requested the court to extend the finalization deadline for the settlement until December 15, which would temporarily suspend all associated deadlines.
Advancing Towards Regulatory Clarity
Looking at the broader picture, the US Securities and Exchange Commission has been modifying its strategy regarding the oversight of the cryptocurrency sector since the beginning of Donald Trump’s presidency.
Under the guidance of Chair Paul Atkins, the commission has adopted a more lenient approach towards digital currencies and their influential figures. Actions against other major exchanges, including Coinbase, Binance, and Uniswap, have been notably reduced.
This news arrives just days after Gemini successfully secured $425 million through its initial public offering (IPO), bringing the company’s valuation to around $3.3 billion.
Following the announcement of the settlement, shares of Gemini, which are trading on Nasdaq under the ticker GEMI, experienced a positive swing, closing at $32.52—a remarkable 16% rise from the initial IPO price of $28.
Featured image sourced from DALL-E, with relevant charts from TradingView.com.
